Federal Housing Agencies to Allow Alternate Credit Scores in Mortgage Applications
Approved lenders can use VantageScore 4.0 or Classic FICO, and officials say 21 top lenders have already delivered $10 million in trial loans.
- On Wednesday, the Federal Housing Finance Agency and the Federal Housing Administration announced that mortgage giants Fannie Mae and Freddie Mac will now accept VantageScore 4.0 and other modern credit scoring models to evaluate potential homebuyers.
- Federal Housing Finance Agency Director William Pulte stated this shift modernizes the industry, as traditional FICO models often excluded rent and utility payments, preventing many creditworthy Americans from qualifying for mortgages.
- During a joint press conference, Pulte and Housing and Urban Development Secretary Scott Turner reported that 21 top lenders already approved $10 million in loans during trials, potentially enabling tens of millions more Americans to qualify.
- Addressing housing affordability concerns ahead of midterm elections, the Trump administration launched this initiative to stimulate competition and lower mortgage costs for consumers who previously struggled to gain affordable mortgages.
- Housing policy experts like Chi Chi Wu of the National Consumer Law Center cautioned that high home prices remain the primary barrier, noting that rent data might not help those with significantly negative credit histories.
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The New York LedgerTrump administration makes Fannie, Freddie change it says will benefit 'tens of millions' of Americans
Fannie Mae and Freddie Mac are making a major change to how Americans may qualify for a mortgage.The government-backed mortgage giants said Wednesday they will begin allowing loans evaluated using VantageScore 4.0, a newer credit scoring model that can incorporate data such as rent and utility payment history.The change will initially roll out on a limited basis, beginning with a group of approved lenders, as part of a broader credit score moder…
US Government to Implement New Credit Score Models for Mortgages
The Federal Housing Administration (FHA) has joined with Fannie Mae and Freddie Mac to implement new mortgage credit scoring models, aimed at making homebuying more affordable for Americans, the Department of Housing and Urban Development (HUD) said in an April 22 statement. FHA will now allow the use of VantageScore 4.0 and FICO 10T as eligible credit scoring models for underwriting FHA-insured mortgages. Both Fannie Mae and Freddie Mac are ope…
Fannie Mae, Freddie Mac to Accept Credit Scores Factoring Rent, Utility Payments
WASHINGTON D.C (VINnews)-Fannie Mae and Freddie Mac will now accept alternative credit scores that incorporate on-time rent and utility payments, a move aimed at expanding mortgage access for creditworthy borrowers with limited traditional credit histories, Housing and Urban Development Secretary Scott Turner said Wednesday. Turner highlighted the change as a step to help younger buyers, […]
Fannie Mae and Freddie Mac to accept 'predictive' credit scores, officials say
WASHINGTON (Reuters) — Housing finance giants Fannie Mae and Freddie Mac are now accepting additional credit scores that take into account rent and utility payments, a U.S. government official overseeing the agencies announced on Wednesday. The move is aimed at boosting access to affordable mortgages, a goal of President Donald Trump’s administration. Federal Housing Finance Agency Director William Pulte said the pair, which guarantee most U.S. …
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