A new study by UI housing researchers shows that VantageScore 4.0 and FICO 10T significantly outperform Classic FICO. 10T also outperforms VS4, but by a much smaller margin.
Even though FHFA Director Bill Pulte spent much of last year floating the idea of LLPA reform as a way to lower the cost of a mortgage, the new LLPA grids for VantageScore 4.0 were not accompanied by a reduction in fees for Classic FICO loans.
New research suggests that as much as a third of the difference in a loan’s VantageScore 4.0 score and its FICO 10T score is unrelated to the credit-scoring model.
The ranking member of the Senate Committee on Banking, Housing and Urban Affairs pressed FHFA Director Bill Pulte and HUD Secretary Scott Turner to describe their plans to enforce new restrictions on home purchases by Wall Street and private equity firms.