FHFA Director Pulte directs Fannie Mae and Freddie Mac to approve VantageScore

FHFA credit scoring VantageScore FICO mortgage lending

Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), has directed Fannie Mae and Freddie Mac to approve the use of VantageScore for all lenders. Pulte stated that the move aims to end the monopoly held by FICO, which he claims has increased its credit score pricing by 1,800% since 2020.

In addition to expanding VantageScore access, Pulte announced that the FHFA is considering a “bi-merge” credit report system and is studying the potential use of a single credit report to reduce costs for American consumers. He criticized major credit bureaus Equifax, Experian, and TransUnion, alleging they have overcharged consumers for too long.

The announcement had immediate market impacts. Shares of Fair Isaac (FICO) fell 20 percent in early U.S. trading, while TransUnion and Equifax saw declines of 9 percent and 8 percent, respectively. The Mortgage Bankers Association expressed support for moving toward a single-file approach to promote competition and reduce costs.

Entities

Bill Pulte · Fannie Mae · Federal Housing Finance Agency · Freddie Mac · VantageScore

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] Pulte stated that FICO has increased the price per credit score by 1,800% since 2020. wrenews.com · justthenews.com
[○ 1 SOURCE] Shares of Fair Isaac (FICO) fell 20 percent in early U.S. trading following the announcement. www.ntd.com
[○ 1 SOURCE] TransUnion and Equifax shares declined by 9 percent and 8 percent respectively in U.S. trading. www.ntd.com
[○ 1 SOURCE] The Mortgage Bankers Association supports moving to a single-file approach for borrowers with strong credit. www.housingwire.com
[● 5 SOURCES] FHFA Director Bill Pulte directed Fannie Mae and Freddie Mac to approve VantageScore for all lenders. wrenews.com · srnnews.com · justthenews.com · www.ntd.com · www.housingwire.com
[● 4 SOURCES] Pulte claimed FICO has held a monopoly on credit scores for too long. wrenews.com · srnnews.com · justthenews.com · www.ntd.com
[● 2 SOURCES] The FHFA is studying the use of a single credit report to reduce costs for consumers. wrenews.com · www.housingwire.com
[● 3 SOURCES] The FHFA is seriously considering the adoption of a bi-merge credit report. wrenews.com · srnnews.com · www.housingwire.com

Sources

FHFA's Pulte: 'We Are Seriously Considering Bi-Merge' [wrenews.com]

8 days ago

US official directs Fannie Mae, Freddie Mac to approve VantageScore for all lenders [srnnews.com]

9 days ago

Pulte directs Fannie and Freddie to allow lenders to use VantageScore, citing FICO monopoly [justthenews.com]

9 days ago

US Directs Fannie Mae, Freddie Mac to Approve VantageScore for All Lenders [www.ntd.com]

8 days ago

FHFA opens door to VantageScore for all lenders [www.housingwire.com]

8 days ago