Written by: Eric Bank
Edited by: Lillian Guevara-Castro
Reviewed by: Adam West
Key Takeaways
Guild Mortgage joins the recent roster of lenders that have begun implementing FICO Score 10 T to underwrite non-GSE loans, or loans that don’t conform to standards set by Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac.
This represents another step toward industrywide implementation of new scoring models that focus on trend information about borrowers — instead of traditional static snapshots of credit history. By more precisely assessing risk, these scoring models can more effectively help balance growth and risk in subprime portfolios.
The announcement means FICO’s Early Adopter Program now has nearly 30 participating lenders with approximately $300 billion in annual mortgage originations.
Guild, which focuses on first-time homebuyers and thin-file consumers, described the transition as an opportune time to responsibly expand its credit box.
“Guild Mortgage is proud to adopt FICO Score 10 T as part of our continued effort to make homeownership more accessible,” said David Battany, executive vice president of Capital Markets.
Subprime Lenders Should Pay Attention
FICO Score 10 T takes into account not just where a borrower is today but also how they’ve used credit over time. That resonates most with lenders who serve those on the financial periphery — many of whom have improving trajectories not seen by legacy models.
The benefits of the model are tangible. According to early adopters, 51% of the analyzed mortgages received an improved score with Score 10 T compared with mortgages using legacy models.
More importantly, 1.7% of the loans had a score of 740 or higher — a level capable of boosting borrower pricing and facilitating greater availability of better terms. The performance gain is a real upside, especially for those who lend in low-margin or riskier segments.
This insight into borrower behavior offers several advantages:
- Better segmentation of stable and unstable credit users.
- Fresh opportunities for those who had previously fallen below cutoff marks.
- Increased alignment with regulatory and secondary market expectations.
Since Score 10 T will be included in future underwriting models of Fannie and Freddie, early adopters will be positioned to reduce future compliance frictions. They will also benefit from enhanced access to the capital markets once trended scores are the norm.
“With our latest score, which uses trended credit data, lenders gain a deeper understanding of borrower behavior, unlocking opportunities for millions of Americans,” said Julie May, vice president and general manager of B2B Scores at FICO.
Looking Ahead
The move by Guild Mortgage also reflects broader recognition of the company’s leadership in technology. The company was ranked as a leading provider in the Forrester Wave: AI Decisioning Platforms, Q2 2025 with high marks in its product strategy and platform capabilities.
Although Guild’s trend-based data transition makes sense for mortgages, the principle being applied — better decision-making with trend-based data — has potential implications across other verticals.
The auto finance, credit card, and personal loan businesses can also benefit from increased knowledge of borrower behavior.
Guild implements FICO Score 10 T for non-GSE underwriting, taking a step away from traditional, static consumer credit data.
To facilitate the transition to Score 10 T, FICO has developed a dedicated Migration Resource Center and offers one-on-one service from its Mortgage and Capital Markets team. These solutions help to simplify onboarding as well as spot opportunities for default exposure reduction and responsibly growing the portfolio.
FICO Score 10 T is not simply an update to a scoring model. It’s part of a larger advance in how lenders assess risk and pursue inclusion. For those financial entities seeking to change and grow responsibly, this may be the time for them to consider whether their credit tools are up to date.
