Several mortgage brokers using VantageScore 4.0 through United Wholesale Mortgage (UWM) gave positive reviews of the more modern, innovative credit score, as reported by HousingWire. Brokers noted that VantageScore 4.0 showed credit score improvements and enabled previously “impossible” loan scenarios to be possible.
UWM gave independent mortgage brokers access to VantageScore 4.0, along with the legacy model, following the Federal Housing Finance Agency’s (FHFA) announcement that VantageScore 4.0 can be used for Fannie Mae and Freddie Mac loans.
The president and CEO of Mitten Mortgage Lending said that he was able to lower a borrower’s rate from 6.5% to 6.375% after applying UWM’s parameters of subtracting 20 points from VantageScore.
Another leader from Clear Choice Lending shared several success stories within weeks of using the model:
The broker-owner recounted a borrower who went from “no loan” to clear-to-close in about 10 days after UWM pulled a VantageScore report. Another borrower saw his credit score rise from 701 to the mid-760s after running the report through VantageScore, saving about $33 a month in mortgage insurance and $40 in interest due to a lower rate of about an eighth of a point.
Read more about VantageScore 4.0’s significant improvement for lenders here: https://www.housingwire.com/articles/vantagescore-uwm-broker-loans/
