Following an announcement in July of 2025 regarding a new credit score model called VantageScore 4.0 for mortgage underwriting, Housing and Urban Development Secretary Scott Turner and Federal Housing Finance Agency (FHFA) Director William J. Pulte announced the Federal Housing Administration, Fannie Mae and Freddie Mac are implementing their first new credit score models for mortgages in decades. This change is intended to lower costs for homebuyers, and increase accessibility to mortgages for more Americans.
“By embracing additional predictive credit scoring models, we are taking a meaningful step toward expanding access to homeownership – particularly for creditworthy borrowers who may have been overlooked under older systems,” said Secretary Scott Turner.
The VantageScore 4.0 model was developed by the three major credit bureaus, Equifax, Experian and TransUnion. The new system analyzes changes in credit data over time and also includes additional data points—such as rental, utility and telephone payments. These data points have traditionally been excluded from a credit report.
“The Federal Housing Finance Agency’s announcement marks an important step forward in modernizing the mortgage marketplace and expanding access to homeownership,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “For years, the National Association of REALTORS® has advocated for a more competitive and accurate credit scoring system, one that better reflects how consumers manage their financial lives today.”
“Introducing competition into the credit scoring process has the potential to lower costs, improve efficiency and open the door to qualified borrowers who may have been overlooked under older models. By allowing the use of multiple credit scoring approaches, including those that incorporate rent, utility and other payment histories, this policy can help create a more complete and fair assessment of creditworthiness,” McGahn says.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
