Competition is what makes markets great. Information and data are what make markets great. There’s been a lot of excitement among mortgage lenders about this decision. They want to use VantageScore because it’s a better score.

VantageScore President and CEO Silvio Tavares joined Bloomberg’s ‘The Close’ to discuss the FHFA’s recent mandate implementing VantageScore 4.0 for mortgages and the transformational impact of this decision on the housing market.

Additionally, Tavares commented on the predictive advantages of VantageScore 4.0.

Bloomberg Intelligence published a report this week and said that VantageScore is 15% more predictive than the legacy score. If you look at our own analysis head-to-head, VantageScore 4.0 is 11% more predictive over time.

He elaborated that using VantageScore 4.0 in Freddie Mac and Fannie Mae mortgages will open homeownership possibilities for up to 5 million more Americans, ranging from veterans who have been away too long to farmers who have avoided incurring credit.

Tavares also discusses the growth potential of VantageScore following the FHFA’s decision:

VantageScore is already the leader in many major segments, like credit cards and consumer display of credit scores. This is clearly going to drive a huge growth for the business, but quite frankly, we’re more excited for the American people - so many new creditworthy people will have the chance to get their first mortgage.

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