Mortgage lenders can now originate loans using either VantageScore 4.0 or Classic FICO credit scores without facing different Fannie Mae and Freddie Mac fees based on the scoring model used on an individual file.
Guidance published Wednesday by the government-sponsored enterprises (GSEs) said the new loan-level pricing adjustments (LLPAs) would take effect for mortgage loans and mortgage-backed securities (MBS) settled or issued on Oct. 1 or later.
“Credit fees will no longer be differentiated based on the credit score model with which the mortgage is delivered,” said Freddie Mac in a seller bulletin outlining the shift.
“When a lender elects to use VantageScore 4.0, they must request VantageScore 4.0 from each of the three credit repositor...