MBS investors are likely to charge a pay-up for securities backed by mortgages underwritten with VantageScore — at least until they’re confident prepayment speeds won’t accelerate.
Early interest in the VantageScore 4.0 pilot has been strong, but participants note that the new score can be up to 100 points different from Classic FICO.
Rocket claims prepayment rates on the loans bought as part of UWM’s MSR deals are roughly 2.5 times greater than prepayment rates for comparable pools and resulted in nearly $100 million in damages.
On a year-to-date basis, Rocket’s deliveries to the GSEs more than doubled from the first four months of 2025, driven by its acquisition of Mr. Cooper, which was finalized on Oct. 1.
United Wholesale Mortgage has increased its bid for Two Harbors Investment after CrossCountry Mortgage matched its previous bid for the real estate investment trust.
FICO’s CEO argued that VantageScore isn’t gaining much traction in the MBS and ABS markets, and that the only way the score will take share with GSE mortgages will be if lenders game the system.