Decision Ushers in A New Era for Predictive Performance and Financial Inclusion 

VantageScore announced today that the Federal Housing Finance Agency (FHFA) has made the decision to approve VantageScore 4.0 for use by Fannie Mae and Freddie Mac (the GSEs). 

The FHFA’s decision ushers in a new era for the mortgage origination market by creating credit score competition, improving predictive performance, and expanding financial inclusion.  

VantageScore expands the scorable population through a combination of analytically and empirically driven innovations that will now allow approximately 33 million newly scoreable consumers to have more equitable access to mortgages.  

“Owning a home remains one of the most important ways Americans build wealth and financial security. FHFA’s action will enable millions more creditworthy Americans to have access to mortgages by using VantageScore’s more predictive credit score,” said Silvio Tavares, President and CEO of VantageScore. 

Driven by a mission to develop highly predictive models, expand credit access and increase inclusivity by scoring more consumers, VantageScore has worked in collaboration with a broad cross-section of legislators, regulators, and industry stakeholders in pursuit of a more fair and equitable mortgage industry since its founding in 2006. 

“We would like to extend a sincere thanks to FHFA Director Sandra Thompson, the FHFA and the GSEs for their leadership in undertaking this thorough process and the many advocates that, for over a decade, have elevated this important initiative,” said Tavares. “We look forward to continuing to help industry stakeholders quickly and smoothly transition to VantageScore.” 

For mortgage companies and lenders who want to convert to VantageScore, they can get started now. 

Additional tools and resources to help lenders upgrade the VantageScore are available at VantageScore.com.

More information about what FHFA’s decision means for consumers can be found here.