Fair Isaac Corp. a provider of analytics and decision management technology, recently announced a new forward-looking decision tool kit for lenders. The Fair Isaac Risk Management Suite, available in 2Q08, provides deeper insight into the future debt sensitivity and default risk of individuals, as well as more precise understanding of default risk across entire loan portfolios. The suite includes the latest FICO 08 Score plus a new Credit Capacity Index score, Portfolio Stress Testing analytics, and educational modules known as Fair Isaac Insights.

Fair Isaac Credit Capacity Index – This custom solution will offer lenders significantly deeper insight about consumers in a given  FICO score range by illustrating the degree to which consumers at  that risk level are able to handle future, incremental debt. Used in tandem with the FICO credit score, the Credit Capacity Index will  provide lenders with unprecedented control of credit risk. Lenders are now preparing to test the Credit Capacity Index for use with revolving consumer debt such as credit cards. Application of this technology for use by mortgage lenders is also being explored for predicting outcomes, such as which borrowers with adjustable rate home loans will safely handle higher payments once their loan rates reset.

"In challenging times, it falls to the leaders to stay the course and produce innovations that restore equilibrium and growth," said Mike Campbell, Chief Operating Officer for Fair Isaac. "As a leader in analytics and decision technology for 50 years, we take our responsibility seriously, and will continue to work closely with our clients and partners to develop the products they need to be successful."