Fannie, Freddie Open VantageScore 4.0 To All Lenders
By CU Today Staff —
WASHINGTON—Fannie Mae and Freddie Mac have opened use of VantageScore 4.0 to all of their approved single-family lenders, giving mortgage originators the option of using the alternative credit-scoring model instead of Classic FICO on eligible loans sold to the government-sponsored enterprises. The change, effective immediately, expands what had been a limited lender rollout, according to Fannie Mae's Lender Letter LL-2026-06 and reporting by HousingWire.
The expansion follows a directive last week from Federal Housing Finance Agency Director Bill Pulte, who said the initial rollout had reached 50 lenders and instructed Fannie and Freddie to make VantageScore available to all lenders. Pulte has cast the change as an effort to increase competition with FICO and lower mortgage-related costs. Reuters reported that FICO shares fell 20% after Pulte announced the broader rollout.
Lenders may now use either Classic FICO or VantageScore 4.0 for eligible GSE loans, but they cannot mix the two models among borrowers on the same mortgage, according to HousingWire. Loans using VantageScore must continue to use scores from all three national credit bureaus under the tri-merge requirement, while manually underwritten loans must continue using Classic FICO. FICO Score 10T, another model previously approved for eventual use, is not yet eligible for delivery to either GSE.
The move marks another step in a credit-scoring overhaul that began in April, when the FHFA announced implementation of VantageScore 4.0 and FICO 10T. VantageScore, which is jointly owned by Equifax, Experian and TransUnion, says its 4.0 model incorporates trended credit data and can score approximately 33 million more consumers than traditional models. The company said that, as of Aug. 31, VantageScore 4.0 had been the sole credit score used on more than 9% of mortgages securitized by Fannie and Freddie since May 1.
Originally reported by CU Today.