MBS investors aren’t sure how VantageScore scores compare with classic FICO scores. And a variety of systems used in the mortgage market need to be updated to allow for two scoring models.
Following adoption by the 30-largest lenders, VantageScore will focus on making sure technology providers and smaller lenders are prepared to implement its new credit score model.
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.
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.
FICO and VantageScore disagree on how lenders in a GSE pilot are using VantageScore. FICO’s CEO claims there are LTV ratio limitations and a haircut with VantageScore. VantageScore said that’s not the case.
Despite ending his long hiatus on GSE talk, Trump fails to persuade skeptics that he’s ready to take Fannie and Freddie out of conservatorship anytime soon.