FHFA Greenlights Immediate Use of VantageScore 4.0

In a HousingWire article published July 15, FHFA Director Bill Pulte announced that both Fannie Mae and Freddie Mac will immediately accept loans underwritten with VantageScore 4.0, giving lenders a choice between the newer model and the traditional Classic FICO.

Key Points:

• VantageScore 4.0 is now an approved option for mortgage underwriting.

• Lenders can choose which score to use on a loan-by-loan basis.

• FHFA is pushing for flexibility and competition in credit scoring models.

Our Take:

The Bottom Line: We’re Ready
At Informative Research, we’ve been anticipating this shift for some time, and we’re pleased to share that our platform already supports VantageScore 4.0.

That said, being technically ready doesn’t mean the industry is prepared to act just yet. Most LOS and AUS platforms are not currently equipped to support the simultaneous use of multiple scores.

What’s Still Unclear
Despite the “effective immediately” phrasing, the implementation roadmap is still under development. Major outstanding questions include:

• Will lenders use VantageScore in addition to or instead of FICO?
• Which score governs pricing and eligibility?
• What does a Loan-Level Pricing Adjustment (LLPA) grid look like for Vantage-only loans?
• Will mortgage insurance providers and investors accept loans scored solely with Vantage?
• How will capital and risk calculations adapt to accommodate this shift?

As Rob Chrisman pointed out in his July 9 commentary, there are “so many tentacles to this” that need clarity before actionable steps can be taken.

What you should do- Nothing just yet.

We recommend holding steady for now. No lender should feel pressured to make immediate changes until the GSEs and FHFA issue more detailed guidance.

While most LOS and AUS systems are not yet equipped for a dual-score environment, we’re in ongoing conversations with our technology partners, including major LOS platforms, to understand their roadmaps and timelines. When formal direction is released, we’ll work collaboratively to ensure our clients can adopt these changes efficiently and without disruption.

This shift is a significant evolution in credit scoring, with the potential to increase access and affordability in mortgage lending. But as always, timing and execution are everything.

We’ll keep watching this space closely and update you as soon as there’s meaningful progress. When that happens, Informative Research will be by your side, helping you understand the implications and guiding you through the right next steps for your business.

Published: July 15, 2025
Source: HousingWire