00:00From Austin, Texas, I'm Allison LaForgia, and I am sitting down with a panel to go over all things credit
00:06modernization.
00:07We have Andy Davidson, we have Jennifer McGinnis, we have Greg Scherr, and we have Robert Simmer,
00:12and last but very much not least, my co-captain for this conversation, Shelly Leonard.
00:18We're going to start with Greg.
00:19What will actually move the needle for credit modernization in the next 12 to 24 months?
00:26Quick answer.
00:27Wow.
00:28That's a tough one.
00:31I think the 10T, we need the data.
00:34We've got to be able to see that to know where the real benchmarks are to have the full picture.
00:40Release the data.
00:41All right, Rob, what's going to move the needle?
00:44What's going to move the needle?
00:46We are going to have CHLA working this issue so hard, and if the aggregators don't start allowing us to
00:53sell Advantage Score,
00:54we'll be calling them quite a bit.
00:57Ring, ring.
00:58Aggregator advocacy coming near to a place near you.
01:03You know, again, I always have to lean into the technology.
01:06I think that we are making all of these decisions based on how our industry operates today,
01:14and no one's considering the future of what AI could do and how that could really cause true disruption in
01:22this space related to credit data and scores.
01:25I'm going to pivot on that one and say, yes, it can help immensely, but we also have some risks
01:31that we've got to insulate while we're using it.
01:33I think AI and a vast array of models can help a lot, but they also have to be reined
01:39in to not create additional problems and disruption not in a good way.
01:43I agree with Greg on release the FICO 10T data.
01:47You know, let the market do the analysis.
01:49It's time.
01:50It's been going on, to your point, since 2022 when these were approved.
01:54I think that's really important.
01:56And lifecycle counterparties.
01:58Who's going to approve it?
02:00Who's not?
02:00I think it's going to be the game changer of what happens in the next 12 months.
02:03I'm going to give you two.
02:05So one is the competitive dynamics between the various parties, which is heating up very rapidly now, which actually may
02:13address some of the cost concerns in the long term.
02:16But what really will accelerate it is if we go through some sort of down cycle in the economy where
02:24having accurate credit information is really important and one method outperforms or doesn't outperform.
02:30Or if we go through another, like, refi cycle, in which case no one cares about this at all.
02:35That's the old Warren Buffett quote.
02:37You know, when the tide goes out, you find out who's swimming around a bathing suit.
02:42It's a great point, though.
02:43It is a great point because there are many people that feel like we could be heading into a recession
02:46and house prices could collapse.
02:49I mean, I'm not saying this is going to happen, but there are people out there that feel like that
02:53is a fair.
02:54Look, we're going to hit that part of that rung in the cycle eventually, whether it's in a year or
02:58two years.
02:59And then the accuracy of data will never be more important than in that moment.
03:03But I think the next six days really matter on what happens with the latest and greatest ceasefire and what
03:10those impacts are going to be as well.
03:11So fundamentals, market fundamentals.
03:13She's trying to wrap right now.
03:15Market fundamentals, more to come soon.
03:16We're going to reconvene this panel to, let's say, six, eight months.
03:20Yeah.
03:21Let's see where we are.
03:21Let's see where it lands.
03:24Let's see where it lands.
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