U.S. Congress Weighs In Again: It Is Now Time for Mortgage Credit Score Competition

• 23?Members of the U.S. House of Representatives Sign Letter Supporting Immediate Implementation of the Credit Score Competition Act?
• 17 Million Americans Represented by Congressional Signatories?
• Five Million Creditworthy Americans May Now Become Mortgage-Eligible Due to VantageScore 4.0 Credit Score?

SAN FRANCISCO, July 25, 2025 /PRNewswire/ -- On Friday, July 18, twenty-three Members of Congress representing over 17 million Americans again weighed in on mortgage credit scoring by thanking Federal Housing Finance Agency (FHFA) Director Bill Pulte for implementing the acceptance of?VantageScore 4.0 credit scores, effective immediately.

In a letter addressed to the FHFA, Rep. Mike Flood (R-NE), Chairman of the Subcommittee on Housing and Insurance, highlighted the advantages of modernizing credit scoring for mortgages, allowing the?VantageScore 4.0 credit score to compete and to be used for the first time for mortgages backed by Fannie Mae and Freddie Mac.

"American consumers have been stuck using a single outdated credit scoring model. Thanks to your efforts, the credit score models on which our housing market relies will be better able to capture creditworthy individuals, like those in rural areas and our veterans, without lowering underwriting standards," wrote Rep. Flood.

"Accepting VantageScore 4.0 for mortgages finally corrects the legacy of inefficiency, waste and stagnation that outdated credit scoring models have perpetuated," said Tony Hutchinson, EVP and Head of Public Affairs for VantageScore. "Millions of prospective?creditworthy buyers will become eligible to achieve the American Dream through the implementation of more predictive and more accurate VantageScore 4.0 credit scores," added Hutchinson.

In addition to Chairman Flood, Rep. Monica De La Cruz (R-TX), Vice Chair of the Subcommittee on Housing and Insurance, and 21?other?House Financial?Services Committee members signed the letter in support of implementing the Credit Score Competition Act.

Highlights of the Congressional letter include:

• Lawmakers Underscore Positive Impact of Credit Score Competition Act Implementation Immediately:?In the letter, Rep. Flood and his colleagues reiterated the importance of Director Pulte fulfilling the Credit Score Competition Act, originally signed into law in 2018. "Thanks to your efforts, the credit score models on which our housing market relies will be better able to capture?creditworthy individuals, like those in rural areas and our veterans, without lowering underwriting standards," they noted.
  
  
• Benefits of Credit Score Competition:?The?letter further?notes that?"over seven years since its enactment, American?consumers?have been stuck using a single outdated?credit scoring model." Now, under Director Pulte's leadership, "the FHFA has been chipping away at those costs and putting homeownership back within reach for millions of additional Americans."?
  
  
• Many?GSEs Already Accept VantageScore for Mortgage:?In?October 2022, the?Federal Housing Finance Agency (FHFA) mandated that mortgage lenders?transition to newer and more modern credit scoring models, including VantageScore 4.0.?The?Veterans Administration?and some of the country's largest Federal Home Loan Banks, including?San Francisco,?New York,?Chicago, Cincinnati and?Dallas, had already implemented the use of VantageScore 4.0 for mortgages.

According to?VantageScore research, an estimated?2.2?million Americans living in the signatories' districts are newly scoreable with VantageScore over conventional credit scoring models. Of this figure, almost?685,000?constituents would have the required VantageScore credit scores necessary to receive a mortgage backed by Fannie Mae and Freddie Mac.

More information about VantageScore 4.0 for Mortgages and migration resources for?lenders are available at VantageScore's?Mortgage Conversion Center. Lenders can also reach out directly to?Mortgage@VantageScore.com with questions and to request support.

About VantageScore^?
VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive and inclusive credit score models. In 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The?VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae?and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.

VantageScore is an independently managed joint venture company, and owners include the three Nationwide Consumer Reporting Agencies (NCRAs) ? Equifax, Experian, and TransUnion.

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SOURCE VantageScore