UltraFICO Score and its Effects

[Bryan Clement]

Hello BP, 

Has anyone heard about this new UltraFICO score coming out next year? I haven't heard much but I do know it's supposed to track your cash levels in your bank accounts to see how much liquidity you have. Will it affect anyone's ability to run their real estate investments? I have very little knowledge of this so if someone has more knowledge than me please share it below! 

Thanks, 

Bryan Clement 

[Jim Goebel]

@Bryan Clement

Hi Bryan that's really interesting.  I can understand some reasoning for this.  I wonder about privacy considerations with regards to a bank's ability/willingness to share a client's info.

It can potentially open up a can of worms in that regard!

I do feel that stress testing a balance sheet is the only way to really look at systemic and catastrophic risk, especially in situations where effects of risk to repay is not independent.  IE: someone gets wiped out and cannot pay off barely any creditors.

My guess is that Bear Stearns and Lehman Brothers met all their obligations until imminent doom/death, for instance.

I'd like to follow this thread if it has some contributions.  Where have you heard about UltraFICO being used? / schedule for adoption?