VantageScore®

The Mortgage Industry & VantageScore

July 11, 2025

VantageScore 4.0 is a Huge Opportunity for Homebuyers: VantageScore on the Schwab Network

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July 11, 2025

Millions More Creditworthy Americans Will Get a Fannie Freddie Mortgage Because of New Modern VantageScore: VantageScore CEO on Fox Business

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July 9, 2025

Millions More Creditworthy Americans Will Become Homeowners with VantageScore 4.0 - VantageScore CEO on Yahoo! Finance

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VantageScore 4.0 Mortgage
Resource Center
The VantageScore Mortgage Resource Center helps lenders transition to VantageScore 4.0 for mortgage lending.
A New Era in Mortgage Credit Scoring
On July 8, 2025 FHFA Director Bill Pulte announced that lenders be allowed to use VantageScore 4.0 credit scores. This follows the 2018 law that President Trump signed previously known as the “Credit Score Competition Act," ushering in a shift toward more modern credit scoring models.
Adoption by Major Mortgage Enterprises

In 2024, several government-sponsored enterprises (GSEs) adopted VantageScore 4.0, including:

Mortgage Migration Playbook

VantageScore Migration Playbook outlines how to implement VantageScore 4.0 for underwriting mortgages.

Impact Whitepaper

Impact of Requiring VantageScore 4.0 for Mortgage Whitepaper.

Mortgage FAQs

Frequently Asked Questions about VantageScore 4.0 for Mortgage.

FHFA's Credit Score Updates

Watch our latest webinar about FHFA's Credit Score Updates.

Digital Analytics Tools

Lenders gain timely data insights into the predictive and inclusionary power of VantageScore via a suite of free access tools: CreditGauge™, Inclusion360®, RiskRatio™ and MarketGain™.

External Resources

Fannie Mae Playbook Freddie Mac Playbook FHFA's Credit Score Model Transition Resource Factual Data Credit Score Model Change Resource

FHFA's New Ruling and Mortgage Acceptance

Thanks to a landmark decision by the Federal Housing Finance Agency (FHFA), mortgage lenders that sell loans to either Fannie Mae or Freddie Mac (also known as the GSEs) will be required to use the VantageScore 4.0 model.

The FHFA's decision opens the door to millions more qualified applicants without lowering credit risk standards.

The result of the decision is a mortgage lending industry that serves consumers through the advancement of financial inclusion and supports mortgage lenders seeking to grow their portfolios.

What does it mean for the mortgage industry?

Millions More Borrowers
Financial Inclusion Through Homeownership
Growing Lenders Portfolios
Read VantageScore's Full Statement
Start a VantageScore 4.0 Mortgage Pilot Today

The Federal Housing Finance Agency (FHFA) has approved the use of VantageScore 4.0 for lenders who sell loans to Fannie Mae or Freddie Mac (also known as the Government Sponsored Enterprises, or GSEs). This landmark decision enables lenders to take advantage of VantageScore's highly predictive and inclusive credit scoring model. Lenders nationwide are already realizing the benefits of VantageScore 4.0 for mortgage – start your pilot today!

What Industry Leaders Are Saying

BMO Bank is a purpose-driven organization that is focused on leveling the playing field in underserved communities and creating the conditions for inclusive economic growth. VantageScore has provided us with the opportunity to provide fair and accurate credit scores to a broader population, and we look forward to leveraging VantageScore for mortgage lending in the future to help further close the housing gap.

Mark Shulman, Head of Consumer Lending, BMO Bank

We believe in driving financial inclusion and creating more equitable access to credit in the communities we serve. We've been using VantageScore 4.0 for our auto loans and credit cards and that's provided us with a new pathway to provide fair and accurate credit scores to a broader population, creating opportunities for us to lend credit safely and soundly to consumers historically left behind. We look forward to leveraging VantageScore 4.0 for mortgage lending in the future.

Richard Wada, Chief Lending Officer at Patelco Credit Union

Why Is the FHFA Announcement Important?
Woman typing

Approximately 33 million more Americans can be scored by our models.

21% of millennials have "thin files," making it difficult for lenders to see them as strong borrowers and leading to more young consumers not able to get the credit they need.

Out of the newly scored Americans, 16% are African-American or Hispanic, highlighting a notable portion of the population.
Illustration of a millenial woman using technology.

Demographic Breakdown

Newly Scorable
Scores 620+
Total
33 Million
13 Million
White
21.6 Million
9.2 Million
Black & Hispanic
9.5 Million
3.1 Million
Asian
1.3 Million
<1 Million
Native American & Pacific Islander
290,000
100,000

Breakdown of Newly Scorable Consumers

Emerging Borrower/ Young File
Young to credit
Consumers who have only credit accounts that are less than six months in age
Dormant
Infrequent or rare users of credit
Consumers who haven't had an update/reporting on their credit files in the past six months but have had updates more than six months ago
No Trades
Have only external collections, public records and inquiries on their file
Consumers who have no credit accounts but are scored based on external collections and public records on their file
Illustration of millienial woman using technology
21% of millennials have "thin files," making it difficult for lenders to see them as strong borrowers and leading to more young consumers not able to get the credit they need.
Why VantageScore?

More Potential Customers

VantageScore allows lenders to accurately assess approximately 33 million more consumers than with other commercially available models. More than 10 million of these newly scored consumers have scores of 620 and above and thus are potentially eligible for mortgages.

Strong Risk Management

VantageScore is at the cutting edge of predictive power thanks in part to its highly sophisticated model architecture and its innovative use of data. The VantageScore 4.0 model features the use of trended credit data and machine learning to drive predictive performance. VantageScore provides more precise decisioning enabling more mortgage application approvals while limiting defaults.

Fannie Mae, Freddie Mac and many others have conducted independent analysis on the published data on VantageScore 4.0 and the legacy models. They all found that VantageScore 4.0 was more predictive and particularly better at identifying those who would default on their mortgages at the lower score ranges (which is where most defaults occur). The more accurate the model, the less risk of defaults.

Close The Homeownership Gap

Home equity is the lifeblood for building wealth in the U.S. economy. With VantageScore, lenders can reach approximately 10 million more veteran and rural borrowers with credit scores above 620. By providing mortgage finance opportunities to these historically underserved but creditworthy borrowers, we can begin to address the widening homeownership gap in America.

More Consumer Friendly

VantageScore has been proud to pioneer the use of rent, telecom, and utility data and the exclusion of paid collection accounts. These consumer-friendly features also help lenders by giving them a more complete and fair picture of their customers' creditworthiness.
Mortgage Industry Usage
In advance of the GSE's migration to using VantageScore, there are sectors of the mortgage market where VantageScore may currently be used.

Portfolio Management

VantageScore credit scores are effective tools for monitoring the ongoing risk of mortgage portfolios.

Mortgage Backed Security Analysis

The VantageScore model is often used in loan-level valuation analyses for previously issued mortgage-backed securities.

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