Many more consumers, for the first time, are going to have the opportunity to have a Fannie Mae or Freddie Mac-backed mortgage.

VantageScore President and CEO Silvio Tavares spoke with Yahoo! Finance to discuss the Federal Housing Finance Agency’s (FHFA) historic decision to allow VantageScore 4.0 to be used for GSE-funded mortgages.

This is a huge change that is going to include more people who have been left behind,” added Tavares. “It’s a benefit not just for competition, but also for many American homebuyers who are going to get their first chance to own a home.

In addition, Tavares explained some of the key differences between VantageScore 4.0 and conventional credit models:

VantageScore includes rental data, a big indicator of creditworthiness. As a result, many consumers are going to have a higher VantageScore and have a credit score for the first time by reporting their rental data.

VantageScore estimates that of the 33 million consumers in total who will now have a credit score, about five million of that group would be mortgage eligible.

Owning a home is a key pathway to economic prosperity in America. It’s a core part of the American Dream, and we are excited to be a small contribution to enabling more people to gain access to a mortgage and own their first home,” stated Tavares.

For more information on VantageScore 4.0 implementation, please visit VantageScore’s Mortgage landing page.

See the full interview below: