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Rocket Mortgage Becomes First Home Lender to Use VantageScore as Its Preferred Scoring Model on All Eligible Loans
Tests showed more applicants met credit requirements and qualified for lower costs when Rocket Mortgage used VantageScore 4.0, the company said.
- On Monday, Rocket Mortgage announced it will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for eligible direct-to-consumer loans starting in the fourth quarter.
- Rocket Mortgage tested VantageScore and FICO for four months this year, analyzing 1.4 million credit reports to determine which model better served qualified clients.
- Testing showed VantageScore 4.0 helped additional borrowers qualify for mortgages by incorporating rent and utility payment data, with those who saved money receiving an average of $1,600 at closing.
- Rocket Pro, the company's mortgage broker division, will continue accepting both VantageScore and FICO scores, while FHA, jumbo, and investment property loans will remain on FICO for now.
- Federal housing regulators have encouraged multiple credit scoring models in mortgages, and The Federal Housing Finance Agency has been working to incorporate VantageScore into the process for loans sold to Fannie Mae and Freddie Mac.
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Rocket Mortgage Making the Switch From FICO to VantageScore
Rocket Mortgage announced today that it will soon default to VantageScore 4.0 instead of the FICO score it relied upon for years. The switch is expected to take place in the fourth quarter of 2026 and all will apply to all eligible loan types. This includes loans backed by Fannie Mae and Freddie Mac, along… Read More »Rocket Mortgage Making the Switch From FICO to VantageScore
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Total News Sources11
Leaning Left0Leaning Right1Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
C 83%
R 17%
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