US Official Directs Fannie Mae, Freddie Mac to Approve VantageScore for All Lenders
U.S. Federal Housing Finance Agency Director Bill Pulte announced that all lenders will now be approved by Fannie Mae and Freddie Mac to use the credit scoring system VantageScore. This directive follows a successful initial rollout involving 50 lenders, marking an expansion of competition in mortgage underwriting beyond FICO's long-standing dominance. Pulte also criticized Equifax, Experian, and TransUnion for overcharging consumers and hinted at potential regulatory changes such as bi-merge or other stronger solutions to address the issue. VantageScore is a joint venture owned by these three credit reporting agencies. The move aligns with broader efforts under the Trump administration to reduce costs for homebuyers and increase competition in mortgage scoring. The decision has implications for Fair Isaac (FICO), which saw its shares decline earlier this year when Fannie Mae and Freddie Mac began accepting VantageScore 4.0 for mortgages.
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Topics: credit scoring Fannie Mae Federal Housing Finance Agency (FHFA) FICO Freddie Mac VantageScore