July 11, 2025
July 11, 2025
July 9, 2025
In 2024, several government-sponsored enterprises (GSEs) adopted VantageScore 4.0, including:
VantageScore Migration Playbook outlines how to implement VantageScore 4.0 for underwriting mortgages.
Impact of Requiring VantageScore 4.0 for Mortgage Whitepaper.
Frequently Asked Questions about VantageScore 4.0 for Mortgage.
Watch our latest webinar about FHFA's Credit Score Updates.
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™.
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?
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!
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
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.
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.
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.
VantageScore credit scores are effective tools for monitoring the ongoing risk of mortgage portfolios.
The VantageScore model is often used in loan-level valuation analyses for previously issued mortgage-backed securities.