Fannie, Freddie, FHA to accept new credit score options

The Federal Housing Administration announced that it, Fannie Mae, and Freddie Mac are implementing new credit score models for mortgages.

Details: The Federal Housing Administration and U.S. Housing (FHFA) said:

• It will permit the use of VantageScore 4.0 and FICO 10T as eligible credit scoring models for FHA-insured mortgage underwriting.

• Fannie Mae and Freddie Mac are updating their selling guides with the new scores and immediately accepting Vantage-scored loans on a pilot basis from approved lenders.

• This step advances the full implementation of the Credit Score Competition Act of 2018 signed by President Donald Trump.

Background:

• Federal Housing Finance Agency Director Bill Pulte last summer announced that an FHFA initiative to transition to the VantageScore 4.0 credit scoring model will be optional.

• In 2022, an FHFA initiative included the validation of two new credit score models—FICO 10T and VantageScore 4.0—for use by Fannie and Freddie.

ICBA Advocacy:

• In a March 2025 letter outlining recommendations, ICBA and other groups said the FHFA’s Credit Score Models and Reports Initiative is overly complex, costly to consumers, and missing key requirements for a successful transition.

• In a previous letter to Pulte, ICBA called on the FHFA to reconsider the implementation of policies, projects, and initiatives that could be harmful for the housing finance industry, such as the Credit Score Models.

• ICBA letters to the FHFA in December and June of 2023 expressed similar concerns and recommendations.

More: A 2024 Independent Banker article breaks down the FHFA credit scoring initiative and ICBA’s concerns with the models.