VantageScore 4.0 is designed to be more inclusive, modern and predictive than the antiquated models currently used in the mortgage market,” according to Tony Hutchinson, EVP and Head of Public Affairs at VantageScore. “It can score about 33 million more adults than the legacy models still used for most GSE mortgages.

U.S. News and World Report highlighted that homebuyers with thin credit files may struggle to qualify for a mortgage because traditional credit scoring doesn’t always capture the whole picture. With a long-awaited approval for VantageScore 4.0 in the mortgage market, lenders can use a credit-scoring tool that considers rent, utility payments and trended data. The rollout is still in progress but marks a significant shift toward a more inclusive and up-to-date approach to mortgage eligibility.

VantageScore 4.0 is different from traditional models because it uses trended data to improve scoring for millions of consumers, including veterans, service members, rural Americans, and others.

Hutchinson added: “When service members are deployed, they often close accounts or leave them dormant, which can cause them to appear as ‘thin-file’ or even invisible under legacy models that require ongoing activity.”

VantageScore 4.0’s ability to score consumers with limited credit activity and incorporate trended data and alternative information can help score veterans more fairly.

We’ve seen strong interest from across the industry, including some of the nation’s largest banks and lenders, who view VantageScore 4.0 as both a competitive advantage and a better way to serve consumers,” says Hutchinson. “Many are eager to integrate the model into their underwriting processes.

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

https://money.usnews.com/loans/mortgages/articles/will-vantagescore-4-boost-mortgage-access