
The U.S. Mortgage Insurers repeated its commitment for members to work with the Federal Housing Finance Agency to implement VantageScore 4.0.
In an Aug. 27 blog post, the group said it welcomed FHFA Director Bill Pulte's announcement permitting Fannie Mae and Freddie Mac to accept loans using the VantageScore 4.0 algorithm and its members will also be ready to do so "in accordance with the [government-sponsored enterprises] timelines and guidance."
Back in July,
Back in July, USMI said it and its members were committed to working with the FHFA, the GSEs and others to navigate the operational considerations, in
The group's own data found that approximately 800,000 conforming mortgage borrowers in 2024 needed private MI as a credit enhancement.
VantageScore touts its model as being able to score more consumers than Classic FICO, until recently the only algorithm the GSEs would accept.
"The market is moving quickly to implement VantageScore 4.0 as directed by Director Pulte, and we look forward to assisting the mortgage insurers in any way possible," a statement from a VantageScore spokesperson said.
In a 2024 USMI survey, "an imperfect credit history was cited by 20% of respondents as one of the biggest challenges that potential homebuyers face", the blog said.
"Including
Like VantageScore 4.0, FICO 10T also
"Pursuant to Director Pulte's announcement, USMI members will continue to actively work with the GSEs and update technology systems to implement this lender-choice credit score policy. USMI and its members support modernizing credit score models and will be ready to accept loans with VantageScore 4.0 credit scores in partnership with the GSEs," the conclusion of the blog post said.