Changing the FICO Score Calculation Won't Correct Subprime Market Issues

Lenders want Fair Isaac to hurry up with the authorized user (AU) changes to the FICO score. October is too far away, they say. They want changes ASAP.

Could the subprime mortgage debacle be part of the reason for the push? I'm willing to bet it is.

Are current mortgage industry issues the fault of consumers who fooled their way into getting approved mortgages? Maybe not. Lenders haven't yet been able to quantify the impact of AU fraud on the industry.

Or perhaps the problem lies with lenders who overlooked questionable credit histories because they saw dollar signs.

Mortgage lenders are likely pressured by their management, shareholders, and Wall Street to make some immediate changes. But pushing for FICO score changes to happen sooner is putting a band-aid on a wound that needs stitches.

Even though some consumers will be hurt by the change, 37% according to a recent About.com poll, the multi-trillion dollar mortgage industry and the global stock market will have a lot more influence over Fair Isaac than we will.

Consumers will have to focus on other methods of improving their credit scores.