Mortgage Brokers and Lenders FAQ’s on score competition

 

This week, FHFA issued FAQs adding clarity to recent X posts from FHFA Director Bill Pulte on score competition and credit report merging. While FHFA has given the GSEs permission to accept Vantage Score 4.0, no date is noted for when the enterprises will be prepared to accept the new score. Even when Vantage Score is rolled out, the GSEs will continue to accept FICO Classic. While only one credit score will be accepted per loan, FHFA could require both scores in the future. The FAQs note that a lender may pick the score that most benefits the borrower. The GSEs will apply risk mitigation policies to limit risk from score choice, but no details are provided here. FHFA will still require credit reports from the nationwide bureaus for each mortgage.