Overview
- Federal housing officials now allow lenders selling to Fannie Mae and Freddie Mac to use VantageScore 4.0, with FICO 10T expected to be permitted next, and HUD says the FHA will follow.
- The initial rollout involves 21 large lenders, and Freddie Mac has already purchased roughly $10 million in loans scored with VantageScore 4.0.
- The new scores use trended data covering about two years of account behavior, which makes last‑minute score boosts less effective and rewards steady debt paydown.
- On‑time rent and utility payments can count only when consumers opt in to have them reported to Equifax, Experian, or TransUnion, and TransUnion estimates just 13% of renters have rent data on file.
- A Prosperity Now analysis publicized by VantageScore reports that VantageScore 4.0 separates mortgage risk more effectively than FICO, including 41% greater differentiation in stress periods, though the claim comes via a vendor‑linked release.