Fannie Mae and Freddie Mac Adopt New Credit Scoring Model to Promote Competition
Fannie Mae and Freddie Mac have announced the adoption of VantageScore 4.0 for mortgage evaluations, aiming to reduce costs for homebuyers and increase competition in the credit-scoring market. The move follows a 2018 law and is expected to expand homeownership access, particularly for borrowers overlooked by older systems. The decision has led to a decline in shares of Fair Isaac Corp., a competitor in the credit scoring space.
Topics: credit scoring Fannie Mae FICO Freddie Mac mortgage industry VantageScore