Fannie Mae and Freddie Mac (the GSEs) officially released guidance and pricing grids for all lenders to use VantageScore 4.0. In addition, the GSEs mandated the delivery of both FICO and VantageScore for MBS and CRT issued to the secondary market. These moves follow years of testing and vetting and will make it easier for all lenders and investors to begin using the new credit score.
This change marks a major victory for REALTORS®, as NAR has long advocated for the introduction of scoring competition and the use of alternative data. The current version of FICO is three decades old and does not incorporate many of the lessons learned through the great financial crisis of 2008, modern modeling techniques, or alternative data. These moves will help boost adoption of models using alternative data and could improve access and affordability for some home buyers over the long term.
