HousingWireHousingWire
In preparation for widespread credit scoring changes, leading credit-score and data analytics company VantageScore has launched a Mortgage Resource Center to support lenders transitioning to the VantageScore 4.0 credit model.
The new resource provides tools and guidance to facilitate integration and aligns with the growing adoption of VantageScore 4.0 by a number of industry players. These include the U.S. Department of Veterans Affairs (VA) and the Federal Home Loan Banks (FHLBs) in New York, Chicago and San Francisco.
The initiative comes as the mortgage industry prepares for mandatory adoption of VantageScore 4.0 by October 2025, as required by the Federal Housing Finance Agency (FHFA). The updated model replaces traditional FICO scores and leverages alternative data points — such as rental payment history — to better assess borrower creditworthiness.
Tony Hutchinson, the senior vice president of industry and government relations at VantageScore, described the Mortgage Resource Center as a critical tool for lenders as they continue working with Freddie Mac and Fannie Mae.
“An immediate transition ensures lenders remain well-positioned to continue doing business with Fannie Mae and Freddie Mac, as well as the other principal GSEs that can accept VantageScore mortgages right now,” Hutchinson said in a statement. “If you are a lender, you need to be implementing VantageScore 4.0 now or risk losing access to key mortgage GSEs.”
VantageScore’s Mortgage Resource Center provides a step-by-step playbook for integrating the new credit-scoring model. Lenders also gain access to CreditGauge, Inclusion360, RiskRatio and MarketGain to evaluate consumer health, highlight underserved consumers, evaluate default levels and survey market opportunities.
In 2024, VantageScore 4.0 integration surged among lenders. FHLBank of New York adopted the model late last month to serve 3.1 million potential borrowers in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands. VantageScore claims to have aided at least 33 million more consumers when compared to traditional credit scoring models, including 4.1 million minority borrowers with credit scores below 620.
