FHFA Reverses Course, Will Let VantageScore Pitch Model to GSEs

August 13, 2019

The Federal Housing Finance Agency has retreated from an earlier proposal on third-party credit score models by allowing Fannie Mae and Freddie Mac to potentially use scores developed by VantageScore.

In a final rule published Tuesday in the Federal Register, the FHFA said all credit score model developers can vie to compete with FICO scores. That deviated from a ruling by the agency last year that barred VantageScore from competing. The 2018 proposal said developers sharing a common ownership with a consumer data provider had a conflict of interest.

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