FICO Models and Credit Scoring

There are many different types of credit risk models. Some models are built for specific segments of the finance industry, including credit card, automobile, and mortgage industries, to name a few examples.  In the mortgage industry, there are numerous proprietary risk models developed by the credit repositories and mortgage insurance companies.  The universally accepted mortgage models are those developed by Fair Isaacs, called FICO models.  

Each of the three credit repositories supports several FICO mortgage models.  This happens because Fair Isaacs refines its FICO models with each repository every four to five years, and the repositories continue to support previous versions.  At the same time, the credit repositories officially advise their customers (credit agencies) to migrate to the new models, but older versions are often supported for years before they are retired.  The main reasons that mortgage lenders fail to migrate to the newest FICO model are due to internal programming limitations, especially those related to underwriting systems.  New models are also regulated by Fannie Mae and Freddie Mac.  

LandSafe uses the latest FICO scoring models approved by Fannie Mae and Freddie Mac:





Model Name: Experian/Fair, Isaac Risk Model V2

Range: 300 to 850

FNMA/FHLMC Acceptance: Yes


  • The inquiry de-duplication window is 14 days

  • 10 Scorecards for Base Model

  • Predicts a borrower’s potential for becoming ninety (90) days delinquent

  • 24-month performance period

  • Predicts a borrower’s potential for becoming ninety (90) days delinquent• Ten (10) scorecards• 24-month performance period




Model Name:

Beacon 5.0

Range: 350 to 950

FNMA/FHLMC Acceptance:Yes


  • The inquiry de-duplication window has been extended from 14 days to 45 days, which means that outside the 30-day window, auto and mortgage inquiries that occur within a 45-day period are treated as one inquiry.

  • Auto and mortgage inquiries are de-duplicated separately whenever possible.

  • All non-telephone utility inquiries are bypassed




Model Name:


2004 (Classic 04)

Range: 300 to 850

FNMA/FHLMC Acceptance: Yes

  • 45-day inquiry de-duplication window: Lengthened from 14 to 45 days

  • Auto and mortgage inquiries are de-duplicated separately whenever possible

  • Non-telephone utility inquiries bypassed in scoring: Non-telephone utility inquiries, generally not regarded as true credit obligations, are ignored in the score calculation

  • Minimum Criteria - one trade opened/updated last six months

  • CA SB 1607 Compliance (CA Score Disclosure Law) -

  • Any score less than the maximum possible value will return at least one reason code

Thirty-day buffer period remains the same: thirty-day buffer ensures all auto- and mortgage-related inquiries within the 30 days from the time of scoring are ignored in the score calculation.  Inquiries prior to the thirty -day buffer period will be treated by the updated de-duplication rule.



© 2008 LandSafe is a registered trademark of LandSafe, Inc.  All rights reserved.