ECONOMIC FOCUS

Volume 15, Issue 05 For the week of February 07, 2011 Gaining Ground on FICO In 2006 the three national credit reporting companies launched a new credit VantageScore Solutions, LLC. The most recent release 2.0 is now fully implemented at all three major credit reporting agencies - Equifax, Experian, and TransUnion - for use by financial institutions. Connecticut-based VantageScore Solutions, LLC, is an independently managed company created by the nation's three major credit reporting companies (CRCs) - Equifax, Experian and TransUnion to provide lenders with a consistent interpretation of consumer credit files across all three companies. It is not a credit reporting company; it does not maintain financial records on individual consumers and therefore cannot provide VantageScore results to individual borrowers. VantageScore leverages the collective experience of industry leading experts on credit data, credit risk modeling and analytics. The new credit model's development sample is compiled from two performance time frames: 2006-2008 and 2007-2009. Each contributes 50 percent of the sample, reflecting more recent credit conditions. FOR THE LENDER - According to VantageScore 2.0 enables lenders to increase populations of target customers while managing appropriate risk. It enables mainstream lenders to score more consumers more accurately. The VantageScore model was built utilizing anonymous consumer credit data reflective of current economic conditions. VantageScore 2.0 enables lenders to increase populations of target customers while managing appropriate risk FOR THE CONSUMER - VantageScore facilitates greater access to credit for the underserved or those with thin credit files who deserve access to credit at fair terms, conditions and pricing. VantageScore also provides score accuracy and consistency for the "full file" consumer. According to JP Morgan's Global Equity Research division, "VantageScore is gaining traction. Chase recently adopted VantageScore, becoming one of the first major lenders to replace certain usage of FICO scores with the new model and view it as an important sign of the bureaus’ growing prowess in analytics, modeling, and decisioning." Key Economic Reports Released This Week RELEASE DATE ECONOMIC INDICATORS RELEASED BY CONSENSUS Wt. INFLUENCE ON INTEREST RATES Mon 02/07 1:00 pm et Weekly Bill Auction Dept. of the Treasury N/A **  If strong demand  If weak demand Mon 02/07 3:00 pm et Consumer Credit for December '10 Federal Reserve Board $2.0B *  If above consensus  If below consensus Tue 02/08 1:00 pm et 3-Year Note Auction Dept. of the Treasury $32.0B offering ** If strong demand If weak demand Wed 02/09 7:00 am et MBA Mtg Apps Survey for week ending 02/04 Mortgage Bankers Association of America N/A * Undetermined Wed 02/09 1:00 pm et 10-Year Note Auction Dept. of the Treasury $24.0B offering ** If strong demand If weak demand Thu 02/10 8:30 am et Jobless Claims for week ending 02/05 Bur. of Labor Statistics Department of Labor 415k *  If abo! ve consensus  If below consensus Thu 02/10 10:00 am et Wholesale Trade for December '10 Bureau of the Census Dept. of Commerce 0.6% ** Undetermined Thu 02/10 1:00 pm et 30-Year Bond Auction Dept. of the Treasury $16.0B offering ** If strong demand If weak demand Thu 02/10 2:00 pm et Treasury Budget for January '11 Dept. of the Treasury -$60.0B * Undetermined Fri 01/11 10:00 am et International Trade for February '11 Bureau of the Census Dept. of Commerce -$41.5B **  If abov! e consensus  If below consensus Fri 01/11 10:00 am et Consumer Sentiment for February ' 11 University of Michigan 75.0% *  If above consensus Error! Filename not specified. If below consensus * Low Importance ** Moderate Importance *** Important **** Very Important

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