On Wednesday, Freddie Mac (OTC:FMCC) and Fannie Mae (OTC:FNMA) announced their acceptance of mortgages evaluated using VantageScore 4.0 to reduce costs for American homebuyers and stimulate competition in the mortgage credit-scoring market.
The mortgage housing behemoths will initiate a limited roll-out to approved lenders. VantageScore is a credit score modeling and analytics firm co-owned by Equifax (NYSE:EFX), Experian (OTC:EXPGF), and TransUnion (NYSE:TRU).
Scott Turner, Secretary of the Department of Housing and Urban Development (HUD), said that adopting new credit-scoring models will expand access to homeownership, especially for borrowers overlooked by older systems.
Bill Pulte, the Federal Housing Finance Agency’s (FHFA) director, proposed allowing Fannie Mae and Freddie Mac to use VantageScore 4.0 in July, marking the first major update to mortgage credit scoring …
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