In a milestone announcement this week from the Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA) will begin insuring mortgages underwritten using VantageScore 4.0 starting January 1, 2027, expanding competition in the credit-scoring market beyond legacy models.
Scotsman Guide reported on the FHA directive, reiterating the expansion of competition in the mortgage market.
We thank Secretary of Housing and Urban Development Scott Turner and acting FHA Director and Ginnie Mae President Joseph Gormley for opening up another opportunity to expand access to affordable housing for all creditworthy Americans,” said Tony Hutchinson, EVP and Head of Public Affairs at VantageScore, in a press release following the announcement.
The FHA decision follows a wave of momentum for VantageScore, with Fannie Mae and Freddie Mac recently expanding access to all lenders across all loan programs. Together, these moves position VantageScore 4.0 to play an important role across the mortgage market.
Since the Credit Score Competition Act was signed in 2018, regulators and industry leaders have worked to bring more options into mortgage underwriting. The FHA’s January 2027 date for VantageScore 4.0 implementation is the latest step toward that goal.
VantageScore 4.0 gives lenders a more modern and predictive view of consumer credit risk, helping them responsibly identify qualified borrowers who may be overlooked by traditional credit scoring models. Don’t get left behind — explore piloting VantageScore 4.0 at https://vantagescore.com/insights/vantagescore-4.
Read the full article here: https://www.scotsmanguide.com/news/fha-sets-implementation-date-for-vantagescore-4-0-fico-10t-acceptance/
