VantageScore unveils its Mortgage Resource Center
In preparation for widespread credit score changes, leading credit scoring and data analytics company VantageScore has launched a Mortgage Resource Center to support lenders in transitioning to the VantageScore 4.0 lending model.
The new resource provides tools and guidance to ease integration and aligns with the growing adoption of VantageScore 4.0 by a number of industry players. These include the 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 the mandatory adoption of VantageScore 4.0 by October 2025, as required by the Federal Agency for Housing Financing (FHFA). The updated model replaces traditional FICO scores and uses alternative data points – such as rental payment history – to better assess borrowers’ 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 to work with Freddie Mac And Fannie Mae.
“An immediate transition will ensure that lenders remain well-positioned to continue doing business with Fannie Mae and Freddie Mac, as well as the other major GSEs that can currently accept VantageScore mortgages,” Hutchinson said in a statement. “If you are a lender, you must implement VantageScore 4.0 now or risk losing access to the major 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 delinquency levels and explore market opportunities.
In 2024, VantageScore 4.0 integration among lenders took off. New York-based FHLBank 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 served at least 33 million more consumers compared to traditional credit scoring models, including 4.1 million minority borrowers with credit scores lower than 620.
