Millions of Americans may soon find it easier to qualify for a mortgage, thanks to a significant move by the Federal Housing Finance Agency (FHFA) to accept VantageScore 4.0, as highlighted by National Mortgage News.

We applaud Director Pulte’s decision to allow the VantageScore 4.0 credit score for all Fannie and Freddie mortgages pursuant to the 2018 Credit Score Competition Act,” said Silvio Tavares, President and CEO of VantageScore.

Under the leadership of Director Bill Pulte, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac, which account for the majority of mortgages in the United States, will now accept VantageScore 4.0. This innovative scoring model incorporates non-traditional credit data, such as rent payments, making it the only credit score that uses both traditional credit report data and alternative data. This inclusive credit scoring model helps qualified borrowers access the benefits of homeownership, creating more opportunities for all Americans, especially those who have historically been excluded.

Modern credit scores like VantageScore that use both credit report data and alternative data, including rental payments, are long overdue for use in the mortgage industry,” Tavares said. “VantageScore has already been broadly adopted in other credit industries.

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

https://www.nationalmortgagenews.com/news/fannie-mae-freddie-mac-add-vantagescore-keep-tri-merge