FHFA's Bill Pulte Notes Increasing Use of VantageScore Over FICO
Federal Housing Finance Agency (FHFA) Director Bill Pulte highlighted the growing adoption of VantageScore over traditional FICO scores in mortgage-related products. In recent social media posts, he noted that all mortgage-backed securities and securitized products issued by government-sponsored enterprises increasingly rely on VantageScore for credit assessments. This shift reflects broader industry trends toward alternative scoring models perceived as more inclusive or predictive of borrower behavior. The change could influence lending practices and risk management strategies across the housing finance sector, particularly among entities like Fannie Mae (FNMA) that issue large volumes of mortgage-backed securities.
Topics: federal housing policy FICO score mortgage-backed securities VantageScore