Additional evidence that concerted efforts at credit score reform are driving tectonic changes in the mortgage industry emerged in third-quarter earnings reports filed by Fannie Mae and Freddie Mac this week.
For the first time in their public quarterly financials, the government-sponsored enterprises (GSEs) disclosed the share of single-family production underwritten — and ultimately priced — using either Classic FICO or VantageScore 4.0 models.
Fannie and Freddie each reported that VantageScore 4.0 accounted for about 6% of new business activity during the third quarter. That’s a 600-basis-point bite out of what for decades had been FICO's pie to itself.
“The introduction of VantageScore 4.0 into the mortgage marketplace is already delive...