Fact Check: New Credit Scoring Model Could Increase Access to Mortgages and Loans
What We Know
The Federal Housing Finance Agency (FHFA) has announced a transition from the Classic FICO credit score model to the FICO 10T and VantageScore 4.0 models. This change is part of a broader effort to update credit scoring requirements for Fannie Mae and Freddie Mac, which are key players in the U.S. mortgage market. The FHFA's plan includes moving from a "tri-merge" credit report system, which requires three credit reports, to a "bi-merge" system that will only require two reports for single-family loan acquisitions (FHFA).
The FHFA estimates that this transition could lead to significant changes in the mortgage market. Research indicates that approximately 4.9 million new borrowers could gain access to the mortgage market as a result of these new scoring models, potentially allowing lenders to originate up to 2.7 million new mortgages, with an annual loan volume reaching as high as $1 trillion (VantageScore).
Analysis
The claim that the new credit scoring model could increase access to mortgages and loans is supported by credible sources. The FHFA's announcement reflects a systematic approach to modernizing credit scoring, which is expected to reduce barriers for many potential borrowers. The shift to the FICO 10T and VantageScore 4.0 models is designed to provide a more accurate assessment of a borrower's creditworthiness, which could benefit those with limited credit histories or lower credit scores (FHFA, HousingWire).
Moreover, the projected increase in access for nearly 5 million new borrowers underscores the potential impact of these changes on the housing market. The ability for lenders to originate a substantial number of new mortgages indicates that the new models could facilitate broader access to credit, particularly for underserved populations (VantageScore, Certified Credit).
However, it is essential to consider the timeline for implementation. The FHFA estimates that the new credit score models will be fully integrated by the fourth quarter of 2025, which means that the effects of these changes will not be immediate (FHFA, HousingWire).
The sources used in this analysis are reliable, as they include official announcements from the FHFA and reputable industry analyses. The FHFA is a government agency responsible for regulating Fannie Mae and Freddie Mac, lending credibility to its statements. Additionally, VantageScore is a well-known credit scoring model provider, and their research findings are based on industry data.
Conclusion
Verdict: True
The claim that the new credit scoring model could increase access to mortgages and loans is substantiated by credible evidence from the FHFA and industry analyses. The transition to the FICO 10T and VantageScore 4.0 models, along with the reduction in required credit reports, is expected to open up mortgage opportunities for millions of new borrowers. While the full impact will take time to materialize, the projected outcomes suggest a significant positive shift in access to credit.
Sources
- FHFA Announces Public Engagement Process for Implementation of Updated Credit Score Requirements
- Ricette fai da te per la pelle in estate: 5 soluzioni naturali
- New Rules for Scoring Mortgage Borrowers Coming in Q4 2025
- Come curare la pelle con ingredienti naturali - Tuttogreen
- FHFA sets transition to new credit models for late 2025
- Pelle irritata: cause e 10 rimedi naturali efficaci per viso e corpo
- New Changes Coming to Credit Scoring Models & Credit Reporting
- Come nutrire la pelle in modo naturale? - Microbiologia Italia
