FHFA APPROVES VANTAGESCORE? 4.0 FOR MORTGAGES DELIVERED TO FANNIE MAE AND FREDDIE MAC

BY PR Newswire | AGENCY | 10/25/22 07:30 AM EDT

Decision Ushers in A New Era for Predictive Performance and Financial Inclusion

SAN FRANCISCO, Oct. 25, 2022 /PRNewswire/ -- VantageScore?announced today that the Federal Housing Finance Agency (FHFA) has made the decision to approve VantageScore 4.0 for use by Fannie Mae and Freddie Mac (the GSEs).

www.VantageScore.com (PRNewsfoto/VantageScore Solutions, LLC)

The FHFA's decision ushers in a new era for the mortgage origination market by creating credit score competition, improving predictive performance, and expanding financial inclusion.

VantageScore expands the scorable population through a combination of analytically and empirically driven innovations that will now allow approximately 37 million newly scorable consumers to have more equitable access to mortgages.

"Owning a home remains one of the most important ways Americans build wealth and financial security. FHFA's action will enable millions more creditworthy Americans to have access to mortgages by using VantageScore's more predictive credit score," said Silvio Tavares, President & CEO of VantageScore.

Driven by a mission to develop highly predictive models, expand credit access and increase inclusivity by scoring more consumers, VantageScore has worked in collaboration with a broad cross-section of legislators, regulators, and industry stakeholders in pursuit of a more fair and equitable mortgage industry since its founding in 2006.

"We would like to extend a sincere thanks to FHFA Acting Director Sandra Thompson, the FHFA and the GSEs for their leadership in undertaking this thorough process and the many advocates that, for over a decade, have elevated this important initiative," said Tavares. "We look forward to continuing to help industry stakeholders quickly and smoothly transition to VantageScore."

For mortgage companies and lenders who want to convert to VantageScore, they can get started now.

Additional tools and resources to help lenders upgrade the VantageScore are available at VantageScore.com.

More information about what FHFA's decision means for consumers can be found here.

About VantageScore Solutions

VantageScore Solutions develops consumer credit scoring models that combine the need for both financial inclusivity and dependable predictiveness across all scoring ranges. The company's most recent models score approximately 96 percent of all adults 18 and older ? including 37 million more people than conventional models ? without sacrificing safety and soundness. As a result, lenders using VantageScore can extend credit to those who have been historically marginalized, including minority and lower-to-middle income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. Additionally, tens of millions of consumers rely on free access to their VantageScore credit scores to monitor their own creditworthiness.

VantageScore Solutions was launched in 2006 and is owned by America's three national credit reporting companies (CRCs) ? Equifax, Experian, and TransUnion. Using a patent-protected tri-bureau methodology, VantageScore delivers time-tested, innovative and more consistent credit scoring models across all three CRCs.

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SOURCE VantageScore

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