FHFA Approves FICO 10T and VantageScore 4.0 Credit Models 

New Credit Models Benefit Borrowers & Enterprises 

The Federal Housing Finance Agency (FHFA) announced October 24, 2022 validation of both the FICO 10T credit score model and the VantageScore 4.0 credit score include rent, utilities and telecom payments, delivering a more accurate and inclusive credit model for use by Fannie Mae and Freddie Mac. 

The FHFA expects implementation will be a multiyear process, and lenders will be required to deliver both scores with each loan sold to Fannie Mae and Freddie Mac.

“While implementing the newer credit score models is a significant change that will take time and require close coordination across the industry, the models bring improved accuracy and a more inclusive approach to evaluating borrowers,” said FHFA Director Sandra Thompson.

This decision comes as an effort to implement Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The FHFA has used the classic FICO score for nearly two decades.

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