Lenders prepare for adoption of multiple credit scoring models

The mortgage industry is preparing for increased adoption of diverse credit scoring models, specifically VantageScore 4.0 and FICO, following recent expansions by government-sponsored enterprises (GSE).

Industry expert Ali Ault notes that VantageScore 4.0 may particularly benefit first-time homebuyers and individuals with thin credit files. Unlike classic FICO models, which may require a credit account to be six months old before generating a score, VantageScore 4.0 can provide a score from day one of a new account.

To support this shift, technology provider Informative Research has upgraded its infrastructure to allow lenders to manage multiple models. Their platform enables lenders to select specific models per loan or receive both scores on a single report. This infrastructure is positioned to support FICO Score 10T ahead of the Federal Housing Administration (FHA) scheduled acceptance on January 1, 2027.