VantageScore Issues Statement in Support of FHFA’s Implementation Timeline

The recent announcement from FHFA on its implementation timeline of the mandated use of VantageScore 4.0 provides a clear 3-year roadmap for the industry to take action. This lengthy phased approach is in addition to the new credit score model validation process the FHFA began 4 years ago in 2019.

Further delay would mean an almost 10-year long delay from when Congress first enacted a law in 2018 requiring a process for validating and approving new credit score models for use in our housing finance system.

Sticking to the timeline is critical both from a risk management and financial inclusion standpoint as the current credit scores required for GSE mortgages are outdated and exclude millions of creditworthy yet underserved borrowers.

Director Thompson and the highly professional staff of the FHFA have managed an exceedingly thorough, transparent evaluation and rule making process that is above reproach. Any statements to the contrary by industry stakeholders are incorrect and perhaps motivated by factors beyond the scope of an unbiased and fair assessment of new models designed to increase access to credit-worthy borrowers and decrease systemic risk in the mortgage system.