FHFA Mandates Consumers be Scored with VantageScore 4.0 Starting in the Third Quarter of 2024

The recent announcement from FHFA on the timeline for implementation of the mandated use of VantageScore 4.0 provides a clear roadmap for the industry to take action. Lenders and consumers will benefit from a new, more inclusive credit score: VantageScore 4.0.

A playbook for implementing VantageScore 4.0 specifically developed for mortgage lenders is available on VantageScore’s website. Additional details from the GSEs are also now available.

VANTAGESCORE IMPLEMENTATION STARTS 2024: Starting in Q3 2024, mortgage lenders will begin delivering VantageScore 4.0 credit scores for newly originated loans. FHFA’s timeline then calls for full implementation by Q4 2025.

WHY IT MATTERS: VantageScore is able to score approximately 33 million consumers that conventional models ignore including approximately 13 million consumers who have scores above 620, which would allow them to potentially qualify for GSE funded mortgages.

ACT NOW: Lenders can act now to be prepared ahead of the major deadlines. In addition to migration readiness, lenders can use VantageScore 4.0 in portfolio lending, pilots and other lending programs dedicated to housing equality.

UPDATE: On September 11, 2023, FHFA kicked off the next phase of the new credit score implementation. FHFA, Fannie Mae, and Freddie Mac will conduct “stakeholder forums and listening sessions, will allow for identification of a wide variety of issues, opportunities, and challenges related to successful implementation of the new requirements.”

If your organization is interested in participating in these mortgage stakeholder engagements, send your name, affiliation, and contact information to CreditScores@fhfa.gov. 

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