Case Study: Contra Costa Federal Credit Union achieves validated risk scoring, improved loan portfolio quality and faster audits with FICO Portfolio Review

CFCU found the FICO® score effective in complementing its practice of closely reviewing each member’s loan application

Contra Costa Federal Credit Union (CCFCU), a member-focused credit union that has used the FICO® score since 2004, needed to validate that the score was properly rank-ordering applicant risk and that its lending decisions (including overrides) were fair and defensible to auditors and regulators. An initial validation with its incumbent vendor proved costly and unactionable, so CCFCU engaged FICO to formally review its score use and portfolio practices.

FICO’s multi-year Portfolio Review produced ten in-depth analytic reports, written recommendations and an action plan. The analysis confirmed the FICO® score provided strong rank-ordering of delinquency risk, recommended tracking override codes and adhering to cutoffs to capture more good loans, and identified ways to improve approval rates and reduce losses. The reports also greatly streamlined external audits—cutting review time from weeks to days—and delivered clearer, actionable insight into portfolio health and scorecard management.

Contra Costra Federal Credit Union

Shelley Murphy

Senior Vice President of lending