The Federal Housing Finance Agency (“FHFA”) announced that Fannie Mae and Freddie Mac (collectively, the “GSEs”) have made historical VantageScore 4.0 credit scores available to approved users. The historical credit scores for both GSEs are based on single-family loans purchased from April 2013 through March 2023. The available scores reflect consumer credit data from all three nationwide consumer reporting agencies.
The publication of the historical credit scores is another step in a multiyear transition to the use of two new credit score models, FICO Score 10 T and VantageScore 4.0 (“bi-merge”) instead of the current Class FICO three credit reports (“tri-merge”) for single-family loan acquisitions. The historical credit scores, which are available for download from the Fannie Mae and Freddie Mac Credit Score Transition Pages, should aid approved users in understanding the new credit score model.
“The release of historical credit scores on tens of millions of loans provides an extensive resource to help market participants prepare for this transition,” said FHFA Director Sandra L. Thompson. “The use of these modernized credit scores models will enhance risk management while furthering sustainable access to credit for consumers.”
The GSEs are planning to release similar historical data for the FICO Score 10 T model and will provide further details regarding implementation of both new credit score models in a future announcement. The GSEs will also be updating their joint partner playbook to provide more information regarding implementation as the initiative progresses.
The FHFA Validation and Approval of Credit Score Models Final Rule (12 C.F.R. Part 1254, effective October 15, 2019) provides the process the GSEs must follow to transition to new credit score models. In October 2022, the FHFA announced that two credit score models, FICO Score 10 T and VantageScore 4.0, had been validated and approved by the GSEs in accordance with the final rule. To read more, click here.
DocMagic will continue to provide updates as additional information becomes available as we participate in the industry feedback process with the GSEs.
To view the updated FHFA Fact Sheet on Credit Models, click here.
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