Mortgage lenders are rolling out new credit scoring models, but in the secondary market, investors and credit rating agencies are awaiting additional performance data while developing workarounds to keep loans moving through the system.

Susan Hosterman, senior director for North America RMBS and covered bonds at Fitch Ratings, said the company can currently rate securitizations that feature the new models, provided that the vast majority of the underlying mortgages (roughly 90%) are still based on traditional FICO Classic scores. The remaining 10% of loans scored using alternative models would essentially be treated as unscored.

“We would be able to details ⇒

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