Pulte orders Fannie, Freddie to open VantageScore to all lenders, citing FICO dominance

Federal Housing Finance Agency Director Bill Pulte directed Fannie Mae and Freddie Mac to approve all mortgage lenders to use VantageScore 4.0, expanding beyond an initial limited rollout that involved about 50 lenders. Pulte said the move is meant to break FICO’s dominance in mortgage credit scoring, after Fannie and Freddie indicated in April they would accept VantageScore 4.0. He also used social media to criticize Equifax, Experian, and TransUnion for overcharging consumers and said regulators are considering alternatives such as a “bi-merge” approach to make solutions “safer and sounder.” The VantageScore system is jointly owned by the three major credit bureaus, while FICO is the long-standing standard used in underwriting. The push reflects the Trump administration’s stated goal of lowering homebuyer costs and increasing competition in the mortgage credit scoring market. Pulte’s actions build on earlier legislation intended to allow Fannie Mae and Freddie Mac to consider more modern credit scoring models for mortgage decisions.