The Federal Housing Finance Agency (FHFA) Announces New Credit Scoring Models for Mortgages

FHFA Adopts New Credit Scoring Models for Mortgages, Benefitting Vulnerable Consumers: The Federal Housing Finance Agency (FHFA) announced the approval of new credit scoring models for use by Fannie Mae and Freddie Mac – changes that will benefit millions of potential homeowners. The FHFA approved both the FICO 10T credit score model and the VantageScore 4.0 credit score models, replacing the 20 year old “classic” FICO model. In a fact sheet accompanying the announcement, FHFA says the new credit score models will provide the GSEs more accurate information on a borrower’s credit and expand access to mortgage credit to worthy borrowers. Both FICO 10T and VantageScore 4.0 include payment information not often included in older credit score models, including payment history for rent, utilities, and phone/internet services.