Story perspectives

Experts Challenge FICO Scores Amid Mortgage Crisis Insights

2/23/2026

Summary

Story summary

In response to Allysia Finley's article on credit scores, supporters argue FICO scores were flawed predictors of mortgage defaults during the 2008 recession, contributing to significant taxpayer losses.
The Federal Reserve Bank of St. Louis supports this claim.
The bipartisan 2018 Credit Score Competition Act was enacted to enhance market choice and outcomes.
Lenders prefer VantageScore over FICO because it uses more data and offers improved predictions of credit risk.

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Story summary

In response to Allysia Finley's article on credit scores, supporters argue FICO scores were flawed predictors of mortgage defaults during the 2008 recession, contributing to significant taxpayer losses.
The Federal Reserve Bank of St. Louis supports this claim.
The bipartisan 2018 Credit Score Competition Act was enacted to enhance market choice and outcomes.
Lenders prefer VantageScore over FICO because it uses more data and offers improved predictions of credit risk.