In the past few years, lenders have been using automated credit scores to determine whether a borrower's credit history meets loan approval. Though credit scores alone do not constitute the only decision making factor, they are an important factor within the overall approval process. Basically, automated systems are able to look at the facets of a credit history from a standpoint of predicting whether a particular consumer represented an unreasonable risk of defaulting on the loan. The analysis of the performance of thousands of mortgage payment histories matched to their owner's credit histories enabled Fair, Isaac and Co. (FICO scores)  to develop what are called credit scores. The FICO scores can also be referred to as Beacon (Equifax) , Empirica (Trans Union) and The TRW/Fair, Isaac Model (TRW) depending upon which national credit data repositories report these scores. The good news is that evaluating a credit history is no longer as subjective a process. If a borrower has a low FICO score (below 620), they are considered a high credit risk. If they have a high FICO score (over 660), they are considered a below average risk. What does this mean for the consumer? The information which determines credit scores is compiled by credit bureaus who have been scrutinized for not being accurate at all times. Therefore, it is incumbent upon all consumers to review their credit information and correct all inaccuracies. Remember the automated adage always applies: garbage in, garbage out. If you are buying a home you should also realize that many loan programs exist for those with lower scores, but these may require higher rates or larger down payments. In an effort to "demystify" the process, in June of 2000, Fair, Isaac and Company made public a list of the factors used in determining credit scores as well as introducing a web-based service to explain individual credit scores (http://www.fairisaac.com). This explanation indicates that the most important factors determining credit scores are payment histories and amounts owed on credit accounts. Fannie Mae and Freddie Mac have incorporated credit scoring into their credit evaluation process. For example, on 1-unit properties, Freddie Mac has instructed lenders to perform different levels of review for different credit scores. A FICO score of over 660 would require a basic review. A FICO score of 620 to 660 would require a more comprehensive review of the file. A FICO score of less than 620 indicates that a lender should be cautious. Freddie Mac has indicated to lenders that these are not approval levels. A FICO score below 620 can be approved—but the file is to be looked at very closely.  FICO Scores below 620 which cannot be approved with compensating factors though the agencies many times will fall within the categories of A- to D credit non-conforming lending.  Freddie Mac has released a program for lending to borrowers with an A- credit rating as well.  In recent years Fannie Mae and Freddie Mac have developed technologies which furthers their review of automated credit scores in the form of sophisticated automated underwriting systems. The Freddie Mac system is known as Loan Prospector and the Fannie Mae system is called Desktop Underwriter. These systems utilize credit scores and other factors to rate loans and make underwriting decisions. Automated Underwriting Systems are changing the loan process significantly. A high rating might allow less underwriting documentation, a smaller down payment or higher underwriting ratios than normally would be required. A lower rating might require a rate premium. Automated Underwriting Systems are also being developed for non-conforming alternatives—including B/C credit loans. Through these systems, underwriting decisions are becoming more rapid and more uniform throughout the industry.