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Fannie Mae and Freddie Mac are making a serious change to how Individuals could qualify for a mortgage.
The federal government-backed mortgage giants mentioned Wednesday they may start permitting loans evaluated utilizing VantageScore 4.0, a more moderen credit score scoring mannequin that may incorporate knowledge similar to lease and utility fee historical past.
The change will initially roll out on a restricted foundation, starting with a bunch of accredited lenders, as a part of a broader credit score rating modernization effort led by the Federal Housing Finance Company (FHFA).
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“It’s only because of President Trump’s landslide victory and management that we lastly broke the gridlock to do that — what’s proper for the American folks over Washington’s particular curiosity,” FHFA Director William Pulte mentioned at a press convention Wednesday.
“Fannie and Freddie, as I mentioned, are prepared to instantly begin working with accredited lenders to simply accept VantageScore loans.”
Single household houses line the streets of Thousand Oaks, Calif., April 2, 2026. ( Kevin Carter/Getty Photos)
Pulte added that Freddie Mac has already begun testing the mannequin, taking supply of about $10 million in loans evaluated utilizing VantageScore, that are anticipated to be securitized.
“If you happen to paid your lease for 10 years, that ought to be factored into your credit score rating,” Pulte mentioned. “So, I believe it would save plenty of cash. And this actually is the golden age of dwelling shopping for.”
He additionally estimated that the change may have an effect on “tens of hundreds of thousands” of Individuals.
Through the restricted rollout, accredited lenders could select between VantageScore 4.0 and conventional FICO scores.
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An individual palms over a home key to a different particular person. (iStock)
A second up to date mannequin, FICO Rating 10T, can also be anticipated to be launched as a part of the modernization initiative.
FICO 10T additionally components in each constructive and detrimental rental fee historical past when reported to credit score bureaus.
“By incorporating newer fashions with extra predictive energy, we will assist sustainable entry to homeownership and hold security, soundness and operational readiness on the heart,” Jake Williamson, government vice chairman and head of single-family at Fannie Mae, mentioned in a press release.
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A on the market signal displayed in entrance of a single-family dwelling. (iStock )
Efforts to modernize credit score scoring have been underway for years. In 2022, federal regulators accredited each VantageScore 4.0 and FICO 10T after intensive testing, in response to Freddie Mac.
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Pulte additionally signaled the shift final yr, noting in a put up on X that “credit score historical past will now not simply embrace bank cards and loans.”
FOX Enterprise’ Daniella Genovese contributed to this report.
