Published • loading... • Updated
Rocket Mortgage Becomes First Home Lender to Use VantageScore as Its Preferred Scoring Model on All Eligible Loans
Tests showed more applicants met credit requirements and qualified for lower costs when Rocket Mortgage used VantageScore 4.0, the company said.
- On Monday, Rocket Mortgage announced it will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for eligible direct-to-consumer loans starting in the fourth quarter.
- After testing VantageScore and FICO for four months and analyzing 1.4 million credit reports, the company determined the new model helped more qualified clients, CEO Jay Bray said.
- Borrowers who saved money using VantageScore 4.0 saved an average of $1,600 at closing, as the model incorporates rent and utility payment data to help those with limited credit histories qualify.
- Specific loan products including FHA, jumbo, and investment mortgages will continue using FICO scores for now, while Rocket Pro division will accept both VantageScore and FICO models from broker partners.
- Federal housing regulators have encouraged multiple credit scoring models in the mortgage market, and The Federal Housing Finance Agency has been working to incorporate VantageScore into the loan approval process.
Insights by Ground AI
18 Articles
18 Articles
Rocket Announces Utilization of VantageScore as Preferred Scoring Model - The MortgagePoint
Following months of evaluation, Rocket reported that VantageScore helped improve qualification rates for a broader client base, while simultaneously decreasing expenses associated with credit assessment costs.
Coverage Details
Total News Sources18
Leaning Left1Leaning Right2Center8Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
C 73%
R 18%
Factuality
To view factuality data please Upgrade to Premium
