JournalNew credit score pricing grids point to higher borrower costs, report shows
Fannie Mae and Freddie Mac have published official pricing grids for single-family mortgages using the traditional Classic FICO and new VantageScore 4.0 models. Early analyses suggest the new credit score model could result in higher borrower costs in many scenarios. The updates, released Wednesday as the Federal Housing Finance Agency (FHFA) opened delivery of VantageScore 4.0 loans to all lenders, formalize a temporary workaround used in a limited rollout: Price adjustments designed for FIC...
Miami New Realty
Miami New Realty, original brokerage blog archiveFannie Mae and Freddie Mac have published official pricing grids for single-family mortgages using the traditional Classic FICO and new VantageScore 4.0 models. Early analyses suggest the new credit score model could result in higher borrower costs in many scenarios.
The updates, released Wednesday as the Federal Housing Finance Agency (FHFA) opened delivery of VantageScore 4.0 loans to all lenders, formalize a temporary workaround used in a limited rollout: Price adjustments designed for FICO are applied to VantageScore 4.0 at 20 points higher. The top purchase tier for FICO remains 780 and above, which now aligns with an 800-plus VantageScore bucket.
According to sources at the government-sponsored enterprises (GSEs), they expect competition between VantageScore and FICO to reduce credit report and borrowing costs over time while making mortgages available for “credit invisible” borrowers by considering rent payments and trended data in new models.
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