My 2c on Financials: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Research evidence excerpt

My 2c on Financials: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A Nrob.odwyer@jpmorgan.com

J.P. Morgan Securities LLC 06 July 2026

Very interesting note from Alex Hess looking at the evolving dynamics around credit bureaus. FICO remains dominant w/

>99% share of fixed-rate mortgages run thru GSEs. VantageScore has picked up 90bps in just a few months, with UWM and

Rocket dominating underwriting. Alex expects these shares will become increasingly relevant as we move from present state (one

LLPA grid, allowed score shopping, no FICO 10T) to future state (future LLPA grids and score shopping still have to be worked

out).

In terms of background, n the U.S. conforming mortgage market, FICO remains the dominant credit score model, with over 99%

of fixed-rate mortgages in GSE MBS backed by FICO as of June 2026. VantageScore 4.0, now accepted by Fannie Mae and

Freddie Mac, has begun to gain traction but this is still a nascent game. VantageScore-backed loans appeared in 429 MBS pools in

June, up sharply from prior months, but the vast majority of loans in these pools still used FICO. Only three lenders, UWM/RKT/

RITM, have submitted loans using VantageScore, with UWM accounting for 87% of VantageScore originations. Most lenders are

still evaluating the new models, and FICO’s entrenched position continues to shape the market landscape. More from Alex here.

Chart of the Day - Last 2 Weeks: AM & Cap Mkts Stocks Laggards vs Insurance Leaders

Financials Research

• Cryptocurrency Markets - July 1 Spot ETP Flows: Net Outflows Persist (Daily $278mn) Yesterday; WTD Net Redemptions

Deepen to $750mn- Kenneth B Worthington here