Jeffrey Miller

Jeffrey Miller asked for guidance on interpreting LLPA grids, particularly comparing VantageScore to FICO, and the potential delta between them. He also questioned the key barriers to switching if grids were at parity and sought clarification on the availability of FICO 10T for conforming/non-conforming markets versus general market availability.

Answer

CEO Will Lansing stated that LLPA grids are unlikely to be at parity, noting FICO and Vantage scores differ by more than 20 points 30% of the time, making direct substitution difficult. He highlighted challenges with gaming, adverse selection, and securitization market objections. VP of Investor Relations Dave Singleton clarified that FICO 10T's availability for direct licensing in conforming/non-conforming markets is distinct from its general market availability, which depends on GSEs/FHFA.

Jeffrey Miller from Baird sought guidance on how investors should interpret and compare LLPA grids under VantageScore versus FICO, including the score delta and potential barriers to switching if grids were at parity. He also asked for clarification on the seemingly conflicting statements regarding the availability timeline of FICO Score 10T for the conforming and non-conforming markets.

Answer

Will Lansing, CEO, stated that LLPA grids are unlikely to be at parity, highlighting that FICO and VantageScores differ by more than 20 points 30% of the time, making direct substitution difficult. He cited challenges such as reconciling LLPA grids, gaming, adverse selection, and potential securitization market penalties as significant hurdles. Dave Singleton, VP of Investor Relations, clarified that the earlier statement about FICO Score 10T availability in H1 2026 referred to its availability for the Direct Licensing Program in both conforming and non-conforming markets, while the uncertainty mentioned by Steve Weber, CFO, pertained to its general market availability through the GSEs.