FHFA expands mortgage credit score options to include VantageScore

The mortgage credit scoring landscape is undergoing significant changes following directives from the Federal Housing Finance Agency (FHFA). FHFA Director Bill Pulte has directed government-sponsored enterprises Fannie Mae and Freddie Mac to allow all lenders to use VantageScore 4.0 when delivering eligible loans. Fannie Mae has issued guidance making this expanded access effective immediately, providing lenders with a choice between Classic FICO and VantageScore 4.0 during an interim transition phase.

Separately, FICO announced that its FICO Score 10T predictive model will become available for use by Federal Housing Administration (FHA)-approved lenders starting January 1, 2027. While VantageScore 4.0 is being implemented immediately for Fannie Mae and Freddie Mac lenders, FICO 10T is following a different implementation track.

Director Pulte has criticized FICO, alleging the company seeks to increase prices rather than offer competitive costs. In response, FICO stated it “embraces competition as it raises the bar for the entire industry” and believes its 10T model will improve underwriting accuracy and strengthen the mortgage ecosystem.