Mortgages underwritten using VantageScore 4.0 credit scores will now be eligible for delivery to Fannie Mae and Freddie Mac through “a limited rollout with approved lenders,” and in the future will be approved for Federal Housing Administration-insured mortgages, top federal housing regulators announced Wednesday during a joint press conference.
With the housing sector struggling through multiple years of historically slow home sales, the updates to federal mortgage lending guidelines were framed as a way to increase competition in credit scoring and equip lenders with modernized data for making informed lending decisions while expanding access to mortgage credit to more borrowers.
About $10 million of VantageScore-underwritten loans have a...