FHFA validates FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac

"FHFA [Federal Housing Finance Agency] expects that implementation of FICO 10T and VantageScore 4.0 will be a multiyear effort. Once implemented, lenders will be required to deliver both FICO 10T and VantageScore 4.0 credit scores with each loan sold to the Enterprises." "...the Enterprises [Fannie Mae and Freddie Mac] will require lenders to provide credit reports from two of the three nationwide CRAs. The Enterprises will work with stakeholders on a plan for implementing the change from a tri-merge credit report requirement to a bi-merge credit report requirement ." FHFA Announces Validation of FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac This is also a good thing: "The new models improve accuracy by capturing new payment histories for borrowers when available, such as rent, utilities, and telecom payments." That's so much better for proving ' ability to pay '. Payments are made on those 'tradelines' every single month, whereas credit card tradelines will show a zero balance if they were used and paid off before statement closing. [Posted with a nod to Saeren , who first mentioned this news in another thread.]