Credit Score Modernization: What We Know About FHFA’s Direction on VantageScore 4.0 and FICO Score 10T

As the mortgage industry navigates FHFA’s credit score modernization initiative, lenders are facing new questions around model choice, implementation timing, and operational readiness. With multiple scoring models approved and a phased rollout underway, understanding how each model works—and where it fits in the broader framework—has become increasingly important. As a credit and data partner that supports both FICO and VantageScore, Informative Research helps lenders evaluate these changes objectively and prepare for what comes next.

FHFA’s credit score modernization initiative is not designed to elevate one credit scoring model over another. Instead, it reflects a broader effort to modernize mortgage credit evaluation by introducing competition, increasing flexibility for lenders, and incorporating more current borrower behavior into underwriting decisions.

As outlined in the previous blogs on VantageScore 4.0 and FICO Score 10T, each plays a distinct but complementary role within this evolving framework.

The Current Phase: Lender Choice

Today, the modernization initiative is in an interim phase, allowing lenders to choose between Classic FICO and VantageScore 4.0 for conventional loan delivery. The FHFA has directed Fannie Mae and Freddie Mac to implement this lender choice framework, with updates to the Selling Guide forthcoming as final operational steps are completed.

The FHFA has also clarified that, initially, loans will be delivered using a single credit score model per loan, emphasizing the importance of planning, policy alignment, and operational readiness.

The Future Direction: Trended Data as a Standard

Both VantageScore 4.0 and FICO Score 10T rely on trended credit data, signaling a long-term industry shift away from static credit snapshots. Trended data enables lenders to evaluate how borrowers manage credit over time, providing additional context for risk assessment and decision-making.

The December 2025 agreement between FHFA and FICO to release historical FICO Score 10T data provides lenders with additional transparency and validation tools as the market prepares for broader implementation.  By enabling deeper validation and analysis, the agreement supports informed adoption decisions and continued modernization across the market.

Strategic Implications for Lenders

Rather than viewing VantageScore 4.0 and FICO Score 10T as competing solutions, lenders should evaluate how each aligns with:

• Borrower demographics and product offerings
• Credit policy frameworks and overlays
• Secondary market execution strategies
• Technology platforms and vendor ecosystems

Credit score modernization is an ongoing process, not a single event. Success will depend on preparation, data-driven analysis, and the ability to adapt as guidance evolves.

Informative Research’s Role

As a neutral credit and data partner, Informative Research collaborates with both FICO and VantageScore models to support lenders throughout the implementation phases. By enabling objective evaluation and operational flexibility, IR helps lenders navigate credit score modernization without forcing premature decisions, ensuring readiness for both current requirements and future changes.