Breaking Advocacy Update: FHFA, HUD Announce Next Steps for VantageScore 4.0, FICO 10T Adoption
On Wednesday afternoon, Federal Housing Finance Agency (FHFA) Director William Pulte and Department of Housing and Urban Development (HUD) Secretary Scott Turner, in a joint announcement, outlined next steps for the adoption of VantageScore 4.0 and FICO 10T.
Fannie Mae and Freddie Mac (the GSEs) have updated their selling policies to allow for the current use of VantageScore 4.0 and the future use of FICO 10T. The GSEs will begin accepting mortgages assessed using VantageScore 4.0 through a limited rollout to 21 approved lenders (timing TBD) and will publish additional historical credit score data this summer for loans acquired between April 2013 and September 2025 for FICO 10T, as well as additional data for VantageScore 4.0 between April 2023 and September 2025.
Secretary Turner said that the Federal Housing Administration (FHA) “in the next few months” will permit the use of VantageScore 4.0 and FICO 10T as eligible credit scoring models for FHA-insured mortgage underwriting.
Director Pulte emphasized that rather than a “pilot program,” the rollout will allow approved lenders to adopt the new models as systems and processes are ready.
The GSEs are expected to release additional operational details, including implementation guidance, pricing updates, and technical specifications, in lender communications and guide bulletins in the coming days.
What they’re saying: In a press statement, MBA President and CEO Bob Broeksmit, CMB, said, “MBA has long advocated for greater competition in the credit reporting and scoring space. Today’s announcement marks an important next step in modernizing the credit scoring framework used by Fannie Mae and Freddie Mac and FHA.”
Broeksmit added, “MBA will also continue to press for reforms of the tri-merge credit reporting requirement, including implementing a single-score requirement for GSE borrowers with strong credit profiles, to encourage greater competition and lower costs for consumers.”
Why it matters: MBA has consistently advocated for increased competition in credit reporting and scoring and welcomes reforms that will lower costs for consumers. FHFA’s and HUD’s announcement to allow lenders to use VantageScore 4.0 and FICO 10T would help accomplish the goals of added competition in the credit score space, increased credit availability, and reduced consumer costs.
What’s next: MBA will work with FHFA, the GSEs, and HUD to get VantageScore 4.0 (and FICO 10T) available as soon as possible to all lenders to ensure that the benefits of competition and modern scores are available to all lenders and their customers. MBA will also continue to press for reforms of the tri-merge credit reporting requirement to encourage greater competition and lower costs for consumers
For more information, please contact Sasha Hewlett at (202) 557-2805.
