VantageScore 4.0 is coming for mortgages, but work must be done

Rent payment history creates exciting opportunity for Racine renters seeking homeownership, rule effective July 8

RACINE WI — A new federal policy may make homeownership more accessible to renters in Racine and Kenosha counties. The Federal Housing Finance Agency (FHFA) has announced that mortgage lenders working with Fannie Mae and Freddie Mac can now use VantageScore 4.0, a credit scoring model that factors in rent payment history. According to a story from The Wall Street Journal, the shift allows lenders to use VantageScore in addition to the traditiona…

VantageScore 4.0 is coming for mortgages, but work must be done

In the days following the announcement that VantageScore 4.0 was suddenly in play for conventional mortgages, FinLocker‘s Brian Vieaux had to burst some bubbles. Most of the 15 to 20 loan officers he spoke to were ecstatic about being able to use the new credit scoring model. Millions of new prospective borrowers could be scored with VantageScore, they said. That’s opportunity in a down market. “I was like, ‘OK, guys, totally agree. If you can w…