In
preparation
for

widespread
credit
scoring
changes,
leading
credit-score
and
data
analytics
company


VantageScore
has
launched
a
Mortgage
Resource
Center
to
support
lenders
transitioning
to
the
VantageScore
4.0
credit
model.

The
new
resource
provides
tools
and
guidance
to
facilitate
integration
and
aligns
with
the
growing
adoption
of
VantageScore
4.0
by
a
number
of
industry
players.
These
include
the


U.S.
Department
of
Veterans
Affairs
(VA)
and
the


Federal
Home
Loan
Banks
(FHLBs)
in
New
York,
Chicago
and
San
Francisco.

The
initiative
comes
as
the
mortgage
industry
prepares
for
mandatory
adoption
of
VantageScore
4.0
by
October
2025,
as
required
by
the


Federal
Housing
Finance
Agency
(FHFA).
The
updated
model
replaces
traditional

FICO
scores
and
leverages
alternative
data
points
—
such
as
rental
payment
history
—
to
better
assess
borrower
creditworthiness.

Tony
Hutchinson,
the
senior
vice
president
of
industry
and
government
relations
at
VantageScore,
described
the
Mortgage
Resource
Center
as
a
critical
tool
for
lenders
as
they
continue
working
with

Freddie
Mac
and

Fannie
Mae.

“An
immediate
transition
ensures
lenders
remain
well-positioned
to
continue
doing
business
with
Fannie
Mae
and
Freddie
Mac,
as
well
as
the
other
principal
GSEs
that
can
accept
VantageScore
mortgages
right
now,”
Hutchinson
said
in
a
statement.
“If
you
are
a
lender,
you
need
to
be
implementing
VantageScore
4.0
now
or
risk
losing
access
to
key
mortgage
GSEs.”

VantageScore’s
Mortgage
Resource
Center
provides
a
step-by-step
playbook
for
integrating
the
new
credit-scoring
model.
Lenders
also
gain
access
to
CreditGauge,
Inclusion360,
RiskRatio
and
MarketGain
to
evaluate
consumer
health,
highlight
underserved
consumers,
evaluate
default
levels
and
survey
market
opportunities.

In
2024,
VantageScore
4.0
integration
surged
among
lenders.

FHLBank
of
New
York
adopted
the
model
late
last
month
to
serve
3.1
million
potential
borrowers
in
New
York,
New
Jersey,
Puerto
Rico
and
the
U.S.
Virgin
Islands.
VantageScore
claims
to
have
aided
at
least
33
million
more
consumers
when
compared
to
traditional
credit
scoring
models,
including
4.1
million
minority
borrowers
with
credit
scores
below
620.

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