Introduction

This user guide is intended to help approved entities utilize the FICO^® Score Mortgage Simulator (FSMS) for mortgage professionals.

The FICO^® Score Mortgage Simulator (FSMS) enables mortgage professionals to run credit event scenarios by applying simulated changes in a current or prospective mortgage applicant's (Applicant) credit report data to simulate potential changes to the applicant’s FICO^® Scores. With this valuable insight, mortgage professionals can help Applicants gauge how these changes could affect the Applicant's FICO^® Scores used in mortgage lending and help drive smarter decisions to potentially open up more loan options and favorable interest rates.

User Interface Overview

Header

When you click the "FICO® Score Simulator" link, you will be directed to the FICO® Score Mortgage Simulator application in a new browser window. The simulator’s interface consists of several key sections, which are outlined below:

The header contains essential application information, including:

• Logo and Application Name
• User Guide (accessible via the User Guide button)
• Order Metadata (accessible via the Order Info button)
• Logout button

Dashboard

The dashboard is the primary working area, divided into multiple sections:

1. Plan Tab Bar

   • The Plan tab bar is located below the header and provides navigation and management for action plans. It includes the Dashboard tab (represented by a home icon) and a "+" button to the right to create custom action plans. As plans are created, they will appear as individual tabs along the Plan Tab bar, enabling users to manage and switch between multiple action plans simultaneously. Users can create and manage up to 10 plans. 

2. Dashboard tab

   • The Dashboard tab serves as the home tab and is the default tab for the application. This tab includes display and interaction with FICO® Smart Plans. See Section 5.0 for details on how to generate and interact with FICO Smart Plans.

3. Custom plan tab

   • Users can create custom plans by clicking the "+" button displayed next to the Dashboard tab or by clicking the "+Create Plan" button displayed on the Dashboard tab right hand side pane.
     

4. Scores Section Displays credit score details, including:

   • Starting FICO Scores for each nationwide credit bureau:
     • FICO® Score 5 (based on Equifax data)
     • FICO® Score 4 (based on TransUnion data)
     • FICO® Score 2 (based on Experian data)
   • Credit Report Pull Date – The date the credit report was pulled from the credit bureau.
   • Simulated Scores or Simulated FICO Scores – Shows simulated FICO® Scores after applying selected simulation actions.
   • Score Delta – The difference between the starting and simulated scores. 

5. Representative Score Tags

   • Starting midscore – This tag is displayed next to the bureau(s) associated with the middle score. It will be displayed when the credit data is uploaded for all 3 bureaus.
   • Starting low score - This tag is displayed next to the bureau(s) associated with the low score. It will be displayed when the credit data is uploaded for 2 bureaus.
   • Midscore – This tag is displayed next to the bureau(s) associated with the simulated middle score.
   • Low score – This tag is displayed next to the bureau(s) associated with the simulated low score. 

6. Search and Sort Bar Provides quick navigation to specific tradelines using:

   • Search Box – Enter keywords to find accounts.
   • Sort Options:
     • All Accounts (Open, Closed, Inactive, Disputed, Authorized User (AU))
     • Account Type (Revolving/Open-Ended, Installment, Mortgage, Other)
     • Sorting Order (Newest First, Oldest First, By Name, By Balance, By Utilization Rate) 

7. Credit Report Section Displays credit report details, divided into the following tabs: 

   • Accounts – Information for all reported tradelines, including:

     • General tradeline information
     • 2-Year Payment History
     • More details

     

   • Collections – List of all reported third-party collections. 

   • Public Records – Details of all reported recorded public records (bankruptcies)

   • Inquiries – List of all reported "hard" credit inquiries. 

8. Action Plan Section

   • Captures details of all the simulation actions enacted by the user.
   • Allows users to print and start over the selected action plan
   • Includes the total pay down amount 

FICO^® Smart Plans

FICO^® Smart Plans provide recommended sets of credit actions tailored to the Applicant's FICO^® score and credit profile.

Each Smart Plan is tailored to the Applicant's credit profile and only includes actions the Applicant can realistically take, such as:

• Paying down balances
• Removing authorized user accounts
• Paying off medical collections

All plans target the simulated representative score, which is determined by the number of bureaus in the credit report upload: the midscore for 3 bureaus, the low score for 2 bureaus, or the score for 1 bureau.

FICO^® Smart Plans allows users to generate plans based on the desired target score or available cash.

Note: By default, the system generates up to three plans targeting the next three 20-point thresholds. For example, if the starting representative score is 595, the system will generate plans to target a 600+, 620+ and 640+ representative score.

IMPORTANT INFORMATION: FICO^® Smart Plans are currently available as a beta release. There will be further refinements to this feature as we continue to optimize plans to provide more refined recommendations.

Simulation Steps to generate target score plans

1. Choose the "Target representative score" button toggle and enter the desired target score.
2. Keep the "Generate additional plans" checkbox in checked state to allow the system to generate plans for the target score, a second plan targeting the target score rounded up to the next multiple of 20 and a third plan targeting 20 points higher than the second target.
3. Click the "Generate Plans" button 

Simulation Results

The system will generate up to 3 Smart Plans for the target score, a second plan targeting the target score rounded up to the next multiple of 20 and a third plan targeting 20 points higher than the second target. For example, if a user enters a target of 595, the system will generate plans to target 595, 600+ and 620+ representative scores.

1. Each plan will include a plan summary view which displays the following fields associated with the simulated representative score:

   • Simulated score
   • Paydown required to achieve the simulated score
   • Timeframe (Please note: the system does not take aging into consideration and the simulated score impact is based on an immediate timeframe)
   • Number of accounts to be updated
   • Bureaus to be rescored

2. Click the "+Use Plan" button to view plan

3. The plan will open in a new tab

4. View plan details including impacted tradelines, actions to be taken and paydown amounts for bureaus which need to be rescored.
   

Simulation Steps to generate available cash plans

1. Choose the "Available cash" button toggle and enter the available budget.
2. Click the "Generate Plans" button 

Simulation Results

1. The system will generate up to 1 Smart Plan which takes into consideration the available budget.
2. The generated plan will include a plan summary view which displays the following fields associated with the simulated representative score:
   • Simulated score
   • Paydown required to achieve the simulated score
   • Timeframe (the system does not take aging into consideration and the simulated score impact is based on an immediate timeframe)
   • Number of accounts to be updated
   • Bureaus to be rescored
3. Click the "+Use Plan" button to view plan
4. The plan will open in a new tab
5. View plan details including impacted tradelines, actions to be taken and paydown amounts for bureaus which need to be rescored.
   

Simulated Scenarios

FICO^® Score Mortgage Simulator supports the following simulation scenarios:

1. Change Tradeline balances
2. Delete third-party collections
3. Update derogatory tradeline to paid
4. Improve the status of a currently delinquent account
5. Remove account disputes
6. Delete 1 account (Authorized User or non-Authorized User)
7. Delete all Authorized User accounts
8. Change balance for third-party collections

Change tradeline balances

Overview: This simulation gives the user the ability to change the current balance populated in the credit report for eligible tradelines. Eligible tradelines include revolving accounts, open ended and installment loans, etc. If there is an amount past due reported on the tradeline, reducing the balance with this action will also reduce the amount past due.

Simulation Steps

1. Navigate to the tradeline(s) of interest on which the balance can be changed. 
2. Click the pencil icon  displayed next to the balance field.
3. A modal window will open and the balances from the current report will be pre-populated. 
4. Update the balances to simulate for the new balance.
5. Click the button to simulate this change.

Simulation Results

1. The FICO® Scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The altered data values will be highlighted in the tradeline section
3. The plan section will reflect:
   • The action that was taken for the selected credit bureaus
   • The applicable pay down amount required for this simulation action
     • Note: Simulating for a balance increase will not impact the pay down amount.

Delete third-party collections

This simulation gives the user the ability to simulate the deletion of third-party collections from the loan Applicant’s credit report.

Note, this simulates the complete removal of the collection from the credit report. A paid-off collection on the credit report is still considered as negative in the calculation of the classic versions of the FICO® Scores.

Simulation Steps

1. Click the Collections tab. 
2. Identify the collection to be deleted.
3. Click the Delete Collection button  to simulate the collection deletion. Notice that the button is presented in an inactive state by default i.e. the icon has a white background.
4. A modal window will open and display the bureaus for which the collection is reported. 
5. Select the bureaus for which you want to perform this simulation action.
6. Click the button to simulate this change.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The "Deleted" text will display next to the bureaus for which you took this action.
3. The "Delete Collection" button  will now display in an active state (the icon will be filled with a blue background) to indicate that you have simulated the deletion of the collection account.
4. The plan section will reflect the action that was taken for the selected bureaus. 

Update derogatory tradeline to paid

This simulation gives the user the ability to update a derogatory tradeline with a balance to a zero/paid balance. If there is an amount past due reported on the tradeline, taking this action results in that amount being updated to reflect a $0 balance.

Note, the simulation will not remove historical delinquency/derogatory information.

Simulation Steps

1. Locate the currently derogatory tradeline. 
2. Click the pencil icon  displayed next to the balance field.
3. A modal window will open and display the bureaus for which the paid derogatory account is reported.
   
4. Select the bureaus for which you want to perform this simulation action.
5. Click the button to simulate this change.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.

2. The payment status for the tradeline will reflect a generic "Paid Derogatory" status value. Note that the actual payment status value differs by each bureau and the "Paid Derogatory" status is a generic placeholder value which is indicative of the simulated payment status.

3. The tradeline balance will simulate a $0 value, the amount past due will also simulate a $0 value.

4. The plan section will reflect:

   • the action that was taken for the selected bureaus
   • the pay down amount required for this simulation action
   • The plan section will reflect the action that was taken for the selected bureaus

   

Improve the status of a currently delinquent account

This simulation gives the user the ability to update the status of a currently delinquent tradeline to a reduced delinquency status or current status. The new status value should be "less severe" than the current status (see table). The expectation is that a payment will be made to improve the status of the delinquency.

Historical delinquency/derogatory information will not be removed with this action. If the new status is updated, it is recommended that you combine this action with a balance change simulation action to simulate the effect of making a payment to improve the status on the balance and amount past due.

Simulation Steps

1. Locate the currently delinquent tradeline.
   
2. Click the pencil icon  displayed next to the payment status field.
3. A modal window will open and display the payment status options eligible for the simulation.
   
4. Click the tradeline status drop down and select the revised current status of the tradeline. Then click the Simulate button.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The payment status for the tradeline will reflect the old and simulated values.
3. The plan section will reflect the action that was taken for the selected bureaus. 

Remove account disputes

This simulation gives the user the ability to user to simulate the removal of dispute indicators from tradelines and third-party collections included in the credit report.

Simulation Steps

1. Navigate to the tradeline of interest. 
2. Click the pencil icon  displayed next to the comments field. 
3. A modal window will display the bureaus for which the dispute is reported.
4. Select the bureaus for which you want to perform this simulation action.
5. Click the button to simulate this change.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The plan section will reflect the action that was taken for the selected bureaus. 

Delete 1 tradeline (Authorized User or non-Authorized User)

This simulation gives the user the ability to simulate the deletion of a single tradeline (Authorized User or non-Authorized User) from the loan Applicant’s credit report.

IMPORTANT INFORMATION: - At any given time, you can only simulate the deletion of one selected tradeline (Authorized User or non-Authorized User) per bureau. - When you simulate the deletion of an Authorized User account for Experian, the FICO® Score Mortgage Simulator will simulate an account termination. Simulating the deletion of Authorized User accounts for TransUnion and Equifax will simulate the account deletion.

Simulation Steps

1. Go to the "Accounts" tab.
   
2. Identify the account to be deleted.
3. Click the Delete Account button to simulate the account deletion. Notice that the button is presented in an inactive state by default i.e. the icon has a white background.
4. A modal window will open and display the bureaus for which the account is reported. 
5. Select the bureaus for which you want to perform this simulation action.
6. Click the button to simulate this change.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The "Deleted" text will display next to the bureaus for which you took this action.
3. The "Delete Account" button  will now display in an active state (the icon will be filled with a blue background) to indicate that you have simulated the deletion of the selected account. The plan section will reflect the action that was taken for the selected bureaus.
4. The "Delete Account" button will display in a disabled state for all other accounts if the individual account was simulated for deletion across all bureaus. 
5. The plan section will reflect the action that was taken for the selected bureaus. 

Delete All Authorized User tradelines

This simulation gives the user the ability to simulate the deletion of all Authorized User tradelines from the loan Applicant’s credit report.

IMPORTANT INFORMATION:

• You can combine the deletion of all Authorized User tradelines with the deletion of a single non-Authorized User tradeline.
• You can also simulate the deletion of a single Authorized User tradeline and combine that action with the simulation to delete all Authorized User tradelines. In these cases, the simulation action to delete all Authorized User tradelines will overwrite the action to delete the individual Authorized User tradeline.
• When you simulate the deletion of an Authorized User account for Experian, the FICO Score Mortgage Simulator will simulate an account termination. Simulating the deletion of Authorized User accounts for TransUnion and Equifax will simulate the account deletion.

Simulation Steps

1. Go to the "Accounts" tab. 
2. Identify the account to be deleted.
3. Click the Delete All AU Accounts button to simulate the deletion of all Authorized User tradelines. Notice that the button is presented in an inactive state by default i.e. the icon has a white background.
4. A modal window will open and display the bureaus for which the Authorized User account(s) are reported. 
5. Select the bureaus for which you want to perform this simulation action.
6. Click the button to simulate this change.

Simulation Results

1. The scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.
2. The "Deleted" text will display next to the bureaus for which you took this action (for Experian, the text will read as "Terminated"). You will see an information icon next to the Account to indicate that the account was deleted (terminated for Experian) as a part of the Delete ALL AU accounts action. 
3. The "Delete All AU Accounts" button  will now display in an active state (the icon will be filled with a blue background) to indicate that you have simulated the deletion of the selected account. The plan section will reflect the action that was taken for the selected bureaus. 

Change third-party collection balance

This simulation gives the user the ability to change the current balance populated in the credit report for third-party collections.

IMPORTANT INFORMATION:

• When you simulate paying off a third-party medical collection, the FICO Score Mortgage Simulator will simulate the deletion of the medical collection.

Simulation Steps

1. Click the "Collections" tab and navigate to the collection for which you want to change the balance. 
2. Click the pencil icon  displayed next to the current balance field.
3. A modal window will open and the balances from the current report will be pre-populated. 
4. Update the balances to simulate for the new balance. 
5. Click the button to simulate this change.

Simulation Results

1. The FICO® Scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.

2. The altered data values will be highlighted in the tradeline section.

3. The plan section will reflect:

   • The action that was taken for the selected credit bureaus
   • The applicable pay down amount required for this simulation action
     • Note: Simulating for a balance increase will not impact the pay down amount.

   

Simulation Steps for paying off a third-party medical collection

1. Click the "Collections" tab and navigate to the medical collection for which you want to change the balance. Note that medical collections are tagged with the "Medical" badge at the account/bureau level when applicable. 
2. Click the pencil icon  displayed next to the current balance field.
3. A modal window will open and the balances from the current report will be pre-populated. The modal will include the following text to indicate that paying off the medical collection will simulate for the collection deletion – "Paying off a medical collection deletes it from the credit report" 
4. Update the balances to simulate for the new balance. 
5. Click the button to simulate this change.

Simulation Results

1. The FICO® Scores section on the top of the display page will update to reflect the simulated score impact along with the Score Delta.

2. The altered data values will be highlighted in the tradeline section.

3. The "Deleted" text will display next to the bureaus for which you took this action.

4. The plan section will reflect:

   • The action that was taken for the selected credit bureaus
   • The applicable pay down amount required for this simulation action
     • Note: Simulating for a balance increase will not impact the pay down amount.

   

Action Plan

The Action Plan in the right panel enables the user to track in real time the simulation scenarios that have been run. Summary information is provided such as which simulation scenario was run, the credit bureaus where the actions were taken and information from the impacted tradeline.

Permitted users can run simulation scenarios for up to thirty days (from the Credit Report Pull Date of the oldest report in the order). After that, permitted users can access saved action plans for an additional period of 90 days.

The simulated FICO® Score and Score Delta displayed are always based on the cumulative simulation scenarios run. The Action Plan is interactive. Permitted users can easily delete any scenario entry within the Action Plan by clicking the trash can icon associated with that action plan, and the simulated FICO Score information will adjust automatically. Permitted users can also reset the action plan by clicking the start over button displayed next to the "Actions" text label.

Action plans are automatically saved and up to five action plans can be created at a given time. These saved action plans can be accessed for up to 120 days (from the Credit Report Pull Date of the oldest credit report in the order) through the same link you use to access the simulator.

There is also a print function that enables the user to print out a hard copy of the action plan that can be shared with the mortgage Applicant for the Applicant’s own personal educational and informational use. The Action Plan output cannot be altered or changed in any manner unless FICO has approved the change in advance in writing.

The print version of the action plan contains two other sections of information - a list of general tips to consider for the mortgage Applicant and disclaimer content.

FICO® Score Mortgage Simulator FAQs

Do I have to simulate an action across all three bureaus?

No. You have full control over the bureau for which you want to simulate an action. You can choose to simulate an action for one, two or all three bureaus.

Which tradeline combinations are supported for the delete account simulation?

The following combinations are supported for account deletion for each bureau:

1. Delete 1 Authorized User tradeline
2. Delete 1 non-Authorized User tradeline
3. Delete All Authorized User tradelines
4. Delete 1 non-Authorized User tradeline + Delete All Authorized User tradelines
5. Delete 1 Authorized User tradeline + Delete All Authorized User tradelines (in this case, the simulation to delete the single Authorized User tradeline will be overwritten by the action to delete All Authorized User tradelines).

Who should I contact if I have FICO® Score Mortgage Simulator questions?

Start off by contacting your own internal resources who are responsible for integration and support of FICO® Score Mortgage Simulator in your environment. Those contacts can review your questions and if needed, access the appropriate internal/external resources needed to respond to you.

For more information, please contact support@kcbcredit.com