FHFA Opens VantageScore 4.0 to All Lenders

In an exciting, late evening tweet on Thursday night, Federal Housing Finance Agency (FHFA) Director Bill Pulte announced that the initial phase of VantageScore 4.0 implementation had been so successful that, effective immediately, all mortgage lenders are approved to use VantageScore 4.0 for Fannie and Freddie mortgages. This signals a huge achievement for VantageScore and the overall credit scoring landscape.

Director Pulte announced the end of the phase-in approach for VantageScore 4.0 at Fannie Mae and Freddie Mac, a development advocated for by VantageScore. This action by the FHFA will accelerate VantageScore usage, well beyond the 9% share of mortgage securitizations achieved since May 1.

Because VantageScore is the most advanced credit score available for mortgage origination today, many of the industry’s largest lenders have already adopted VantageScore 4.0, including Rocket Mortgage, the Federal Housing Administration, the Federal Home Loan Banks, and the U.S. Department of Veteran Affairs. VantageScore is already making waves in the news, with the announcement appearing in publications like Reuters, Barron’s, Scotsman Guide, and more.

This remarkable decision on VantageScore 4.0 adoption will usher in a new era for the mortgage industry and effectively end the FICO monopoly.

A special thanks goes out to Tony Hutchinson, EVP and Head of Public Affairs, and Tamra Moore, General Counsel, for their dedicated work in regulatory, legal and licensing capacities, keeping the decision moving in every phase.