Federal housing agencies today announced plans to use new credit scoring models in mortgage underwriting
The U.S. Department of Housing and Urban Development announced the adoption of FICO 10T and VantageScore 4.0 for Federal Housing Administration loans, calling the move “an important milestone” in ongoing credit score modernization. Jointly, the Federal Housing Finance Agency announced a pilot program allowing the use of VantageScore 4.0 exclusively for loans delivered to Fannie Mae and Freddie Mac, future use of FICO 10T and new pricing based on the updated models.
This is part of an ongoing process of modernization over the last few years. In a letter sent to FHFA in July last year, the American Bankers Association and three associations said the use of VantageScore and FICO could help achieve the shared goal “of a more efficient, more transparent and more competitive credit scoring system that serves as many creditworthy Americans as possible.”
Fannie Mae and Freddie Mac will begin using VantageScore 4.0 immediately and the future use of FICO Score 10T credit scores for loans delivered to Fannie Mae. Publication of historical credit score data for both models is scheduled for this summer. Fannie Mae also will publish historical credit score data for loans acquired between April 2013 and September 2025 for FICO Score 10T, as well as additional data for VantageScore 4.0 between April 2023 and September 2025.
According to the agencies, the updates are intended to “help foster competition and innovation, potentially lower lending costs, and provide new insights to support a smooth transition for our industry partners. Newer credit score models also incorporate additional data that can provide a more complete view of borrower creditworthiness, such as on‑time rent payment history and trended credit data, with the potential to accurately score more consumers.”
Fannie Mae is initially implementing the changes through a limited rollout to approved lenders to help ensure operational readiness before broader availability as the market moves forward with full implementation of modernized credit scoring and credit reporting.
Lenders participating in the limited rollout may now use VantageScore 4.0 from each credit bureau through a tri‑merge credit report for use in originating and delivering new loans to Fannie Mae. Lenders not participating in the limited rollout must continue to use Classic FICO scores from each bureau through a tri‑merge credit report until VantageScore 4.0 is made broadly available. Lenders interested in using VantageScore 4.0 may submit their interest online or contact their Fannie Mae representative.
Additional information and resources are available on Fannie Mae’s credit score models and reports initiative page and FHFA’s credit scores page.
