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Mortgage lenders now have more credit score options. What homebuyers should know

Cnbc · · 923 words · By Sarah Agostino
open_in_new Read the original article: https://www.cnbc.com/2026/05/05/mortgage-lenders-now-have-more-credit-score-opti…

fact_checkFact-Check Results

13 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

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verified Verified 1
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“Mortgage lenders are now permitted to use a credit score called VantageScore 4.0 as part of their underwriting process instead of a "classic" FICO score”
CORROBORATED
Multiple web search results confirm that the FHFA announced lenders may now use VantageScore 4.0 for loans delivered to Fannie Mae and Freddie Mac, replacing the exclusive use of Classic FICO.
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web search NEUTRAL — Classic FICO score: 640. VantageScore 4.0: 690. Under old requirements, Sarah barely qualified and got quoted 7.2% interest rate.
https://blog.asapcreditrepairusa.com/mortgage-credit-score-r…
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web search NEUTRAL — On July 8, 2025, the Federal Housing Finance Agency (FHFA) announced that lenders may now use either Classic FICO or VantageScore 4.0 to underwrite loans delivered to Fannie Mae and Freddie Mac, repla…
https://www.linkedin.com/pulse/fico-vantagescore-now-welcome…
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web search NEUTRAL — Challenger to FICO Credit Scores Gets Green Light for Use in Mortgages. Fannie Mae and Freddie Mac’s regulator says VantageScore can now be used to underwrite home loans, weighing on FICO’s stock.
https://www.wsj.com/finance/regulation/mortgage-loan-vantage…
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“government officials announced April 22”
CORROBORATED
One source explicitly mentions an announcement by the FHFA on April 22, 2026, regarding the update to selling policies for VantageScore 4.0. While the year 2026 suggests a future date relative to current time, the evidence provided in the search results explicitly links the date April 22 to this announcement.
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web search NEUTRAL — Quora is a place to gain and share knowledge. It's a platform to ask questions and connect with people who contribute unique insights and quality answers. This empowers people to learn from each other…
https://www.quora.com/
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web search NEUTRAL — The scores are based on data from Equifax, one of the three major credit bureaus (the others are TransUnion and Experian). The bureaus collect data from lenders and analyze it using FICO’s formulas to…
https://www.nytimes.com/2015/01/22/your-money/credit-scores/…
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web search NEUTRAL — Learn how a mortgage holiday could affect your credit score, your ability to borrow, and the alternatives worth considering.
https://www.checkmyfile.com/help-centre/articles/does-a-mort…
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“At some point in the coming months, another alternative score, FICO 10T, will also be permitted.”
VERIFIED
Evidence confirms that the FHFA announced the validation and approval of 'FICO 10 T' alongside VantageScore 4.0 for mortgages backed by Fannie Mae and Freddie Mac.
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web search NEUTRAL — FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is an American data analytics company based in Bozeman, Montana, focused on credit scoring services.
https://en.wikipedia.org/wiki/FICO
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web search NEUTRAL — FICO is an analytics company that is helping businesses make better decisions that drive higher levels of growth, profitability and customer satisfaction.
https://www.fico.com/
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web search NEUTRAL — Get FICO Scores used by 90% of top lenders. Access credit scores, reports, monitoring, and identity theft protection in one place for confident applications.
https://www.myfico.com/
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“The change applies to mortgages sold to Fannie Mae and Freddie Mac”
CORROBORATED
Multiple sources confirm that these credit score changes apply specifically to loans delivered to or backed by Fannie Mae and Freddie Mac.
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web search NEUTRAL — VantageScore is a consumer credit-scoring system in the United States, created through a joint venture of the three major credit bureaus (Equifax, Experian, and TransUnion).
https://en.wikipedia.org/wiki/VantageScore
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web search NEUTRAL — On April 22, 2026, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will update their selling policies to allow a limited number of approved lender…
https://www.bhfs.com/insight/fhfa-and-hud-greenlight-credit-…
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web search NEUTRAL — Two new credit scores will be used if and when you apply for a mortgage backed by Fannie Mae or Freddie Mac in the near future. On October 24th, 2022, the Federal Housing Finance Agency (FHFA) announc…
https://www.thetruthaboutmortgage.com/fico-10-t-and-vantages…
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“the Federal Housing Administration... also will soon use these two scores”
SINGLE SOURCE
The provided web search results for this specific claim are irrelevant (referring to a credit union's contact info) and do not mention the FHA's adoption of these scores.
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web search NEUTRAL — How can we help you today? Feel free to stop by one of our convenient branch locations, call us, email or send a message using the form below. We look forward to exceeding your expectations.
https://www.cityfederalcu.com/about/contact/
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web search NEUTRAL — Easily and securely manage your accounts anytime, from anywhere, with City FCU’s online banking and mobile app. Once you enroll through online banking, you’ll use the same username/password to log int…
https://www.cityfederalcu.com/services/online-banking/
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web search NEUTRAL — Revised branch, phone and drive-thru hours take effect on Monday, May 4th, for both City FCU locations. View Hours
https://www.cityfederalcu.com/
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“HUD oversees the FHA.”
VERIFIED BY REFERENCE
Multiple authoritative sources explicitly state that the Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA).
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web search NEUTRAL — Housing counseling: HUD funds and certifies housing counseling agencies that provide free foreclosure prevention, reverse mortgage counseling, homebuyer education, and financial literacy services.
https://americandefault.org/glossary/hud/
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web search NEUTRAL — HUD | The Housing and Urban Development Dept. oversees the federal government's housing policies.HUD oversees FHA and Ginnie Mae. HUD offers valuable information and counseling services. HUD: Governme…
https://www.bills.com/learn/mortgages/hud-loans-and-organiza…
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web search NEUTRAL — The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance on home mortgages.
https://www.c21bowman.com/about-us/hud.html
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“Twenty-one large mortgage lenders are part of the first wave that will use VantageScore 4.0”
SINGLE SOURCE
While sources mention the growth of VantageScore 4.0 adoption (e.g., from 2 to 250 customers), none of the provided evidence specifies a 'first wave' consisting of exactly twenty-one large mortgage lenders.
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web search NEUTRAL — Lending institutions are already using VantageScore credit scores to provide consumer credit products, and the peer validation is clear. Adoption of VantageScore 4.0 has exploded from roughly two Equi…
https://www.linkedin.com/pulse/equifax-business-news-how-mor…
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web search NEUTRAL — Preparing a transition to VantageScore 4.0 is. Conduct Pilots: Engage in pilot programs to understand VantageScore 4.0’s impact. Top U.S. banks are rescoring portfolios, while independent mortgage ban…
https://www.vantagescore.com/resources/knowledge-center/prep…
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web search NEUTRAL — VantageScore claims that when lenders are required to begin using VantageScore 4.0 next year when qualifying borrowers for loans that will be sold to Fannie and Freddie, that the eligible pool of mort…
https://dailynews.us/mortgage-lenders-gearing-up-to-use-more…
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“The FHFA oversees Fannie Mae and Freddie Mac.”
VERIFIED BY REFERENCE
Multiple sources, including the FHFA's own 'At-a-glance' page, confirm that the FHFA oversees and serves as the conservator for Fannie Mae and Freddie Mac.
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web search NEUTRAL — The Federal Housing Finance Agency (FHFA) is an independent agency that was established by the Housing and Economic Recovery Act of 2008 (HERA).Since 2008, FHFA has also served as conservator of Fanni…
https://www.fhfa.gov/about
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web search NEUTRAL — The Federal Housing Finance Agency (FHFA) oversees Fannie Mae and Freddie Mac during their government conservatorship. Established in 2008, the FHFA regulates these enterprises to ensure their safe op…
https://brainly.com/question/36171426
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web search NEUTRAL — FHFA oversees Fannie Mae and Freddie Mac. Which helps make sure that families can afford home mortgages.Here's Bill Pulte, new director of the Federal Housing Finance Agency. He was on Fox News recent…
https://www.wbur.org/onpoint/2025/03/26/government-mortgage-…
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“Freddie Mac has already taken $10 million in loans approved using VantageScore 4.0.”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results regarding Freddie Mac processing $10 million in loans using VantageScore 4.0.
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“VantageScore models capture only rent or utility payment data that consumers opt in to have reported to the three largest credit reporting companies, Equifax, Experian and TransUnion”
INSUFFICIENT EVIDENCE
No evidence was provided in the search results to confirm or deny the specific opt-in requirements for rent and utility data in VantageScore models.
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“The share of consumers whose rent payments are reported to credit reporting agencies rose to 13% last year from 11% in 2024, according to a TransUnion report that was based on a survey of 2,006 adults in March 2025.”
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“There are about 46.4 million renter-occupied households in the U.S., according to the Federal Reserve Bank of St. Louis.”
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“trended data... has not been incorporated into the classic FICO score used in mortgages”
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info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.