# US mortgage credit scoring model transition > Live situation record from CLSTR: https://clstr.news/situations/us-mortgage-credit-scoring-model-transition > Updated: 2026-09-09T16:51:21.000Z. Sources: 6. Developments: 3. The US mortgage industry is transitioning toward the use of VantageScore 4.0 as an alternative to traditional FICO scores. VantageScore 4.0 utilizes trended credit data and a larger volume of information to improve mortgage risk prediction. As part of this transition, Fannie Mae and Freddie Mac have updated their Private Mortgage Insurer Eligibility Requirements to include the new model, though the Federal Housing Finance Agency (FHFA) has noted that mortgage insurers may need to maintain larger safety nets for loans originated using VantageScore 4.0 compared to Classic FICO. FHFA Director Bill Pulte has directed Fannie Mae and Freddie Mac to approve the use of VantageScore for all lenders, aiming to end the monopoly held by FICO. Pulte alleged that FICO has increased its credit score pricing by 1,800% since 2020. He also criticized major credit bureaus Equifax, Experian, and TransUnion, claiming they have overcharged consumers for too long. Following these directives, Fannie Mae has issued guidance making expanded access to VantageScore 4.0 effective immediately, allowing lenders to choose between Classic FICO and VantageScore 4.0 during an interim transition phase. In response to the shifting landscape, FICO announced that its FICO Score 10T predictive model will be available to Federal Housing Administration (FHA)-approved lenders starting January 1, 2027. While VantageScore 4.0 is being implemented immediately for Fannie Mae and Freddie Mac, FICO 10T is following a separate implementation track. FICO stated it “embraces competition as it raises the bar for the entire industry” and maintains that its 10T model will improve underwriting accuracy. ## Claims - FHFA Director Bill Pulte directed Fannie Mae and Freddie Mac to approve VantageScore for all lenders. (corroborated by 5 sources) - Pulte claimed FICO has held a monopoly on credit scores for too long. (corroborated by 4 sources) - The FHFA is seriously considering the adoption of a bi-merge credit report. (corroborated by 3 sources) - Pulte stated that FICO has increased the price per credit score by 1,800% since 2020. (corroborated by 2 sources) - Shares of Fair Isaac (FICO) fell 20 percent in early U.S. trading following the announcement. (single source) - TransUnion and Equifax shares declined by 9 percent and 8 percent respectively in U.S. trading. (single source) - The Mortgage Bankers Association supports moving to a single-file approach for borrowers with strong credit. (single source) ## Timeline ### 2026-09-09: FHFA expands mortgage credit score options to include VantageScore The FHFA has expanded access to VantageScore 4.0 for mortgage lenders via Fannie Mae and Freddie Mac, while FICO's 10T score is set to become available for FHA-approved lenders in 2027. 2 sources. https://clstr.news/cluster/fhfa-expands-mortgage-credit-score-options-to-include-vantagescore ### 2026-09-04: FHFA Director Pulte directs Fannie Mae and Freddie Mac to approve VantageScore FHFA Director Bill Pulte has directed Fannie Mae and Freddie Mac to allow all lenders to use VantageScore, challenging FICO's market dominance and exploring single or bi-merge credit report options. 5 sources. https://clstr.news/cluster/fhfa-directs-fannie-mae-and-freddie-mac-to-allow-vantagescore ### 2026-08-11: VantageScore 4.0 shows improved mortgage risk prediction VantageScore 4.0 shows improved mortgage risk prediction using trended data, though new GSE guidance requires mortgage insurers to hold larger safety nets for these loans compared to Classic FICO. 2 sources. https://clstr.news/cluster/vantagescore-40-shows-improved-mortgage-risk-prediction --- Cite as: US mortgage credit scoring model transition. CLSTR, https://clstr.news/situations/us-mortgage-credit-scoring-model-transition