Two of the “juggernauts in the housing ecosystem” were “singing from the same song sheet” this week, according to Bill Pulte, director of the Federal Housing Finance Agency (FHFA).
Pulte, whose agency oversees government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, was referring to the fact that both the FHFA and the Department of Housing and Urban Development (HUD) are clearing the runway for the implementation of VantageScore 4.0 as an alternate credit scoring model to the mainstay Classic FICO model.
Specifically, Pulte and HUD Secretary Scott Turner announced Wednesday that mortgages underwritten using VantageScore 4.0 will now be eligible for delivery to Fannie and Freddie through a “limited rollout with approved lenders” —...