CrossCountry Mortgage reports borrower savings using VantageScore 4.0

CrossCountry Mortgage (CCM) has reported that early adoption of the VantageScore 4.0 credit scoring model has resulted in an estimated average savings of $2,500 per qualifying transaction. According to preliminary internal data, loans that received more favorable scores through the new model experienced an average 62-basis-point reduction in loan-level pricing adjustments (LLPAs) during the first 60 days of implementation.

The company is also expanding its eligibility for the scoring model by removing a previous 80% loan-to-value (LTV) restriction. This change allows for a full range of LTV ratios for loans eligible for purchase by Fannie Mae and Freddie Mac. Additionally, CCM is expanding its Department of Veterans Affairs (VA) lending options to provide more flexibility for veterans and active-duty service members.

While the reported savings are significant, the lender noted that the $2,500 figure is based on preliminary data and applies only to loans where the alternative model produced a more favorable score. Actual savings vary by loan.