FHFA Implements New Credit Score Models
Limited Use of VantageScore® 4.0
On April 22, 2026, the Federal Housing Finance Agency (FHFA) announced an interim phase initiative that will allow a limited number of approved lenders to deliver mortgage loans to Fannie Mae and Freddie Mac (the GSEs) using either Classic FICO® credit scores or VantageScore® 4.0 credit scores. Historically, when credit scores are available, the GSEs have generally relied on Classic FICO models. This interim phase represents the first operational rollout of lender choice between the two approved models for loan delivery.
In 2018, Congress enacted legislation directing FHFA to establish a process for the GSEs to validate and approve additional credit score models for mortgage underwriting (often described as the “Credit Score Competition Act” provisions). In 2022, FHFA announced that the GSEs had validated two newer models—FICO® Score 10T and VantageScore® 4.0—which incorporate additional data elements (for example, trended credit data and, when reported, certain rental payment history). FHFA has described the broader initiative as part of an effort to modernize mortgage credit scoring and expand competition in the credit score market.
Approved lenders participating in the interim phase may deliver loans to the GSEs using credit scores from either the Classic FICO model or VantageScore 4.0. FHFA indicated that, for the time being, the GSEs will not accept deliveries that include credit scores from multiple models on a single loan at the time of delivery (i.e., one model must be used per loan for delivery). FHFA also indicated that this change does not modify the GSEs’ current credit reporting requirements, including the continued use of tri-merge credit reports, during the interim phase.
The GSEs have indicated they expect to publish additional historical credit score data in summer 2026 to support future implementation of FICO® Score 10T. Fannie Mae’s Selling Guide Announcement (SEL-2026-04) states that VantageScore 4.0 is available through a limited rollout to approved lenders, and that FICO Score 10T will follow later, with additional guidance to be provided prior to availability. The announcement also indicates that additional historical data for VantageScore® 4.0 is expected to be published in summer 2026.
HUD and the U.S. Department of Veterans Affairs (VA) have also indicated that they plan to allow the use of VantageScore® 4.0 for certain mortgage loans; however, program-specific requirements, implementation details, and effective dates may vary by agency and may be issued separately.
The GSEs’ limited rollout with approved lenders is intended to confirm end-to-end operational readiness before broader availability. During the interim phase, participating lenders may be able to deliver loans using either Classic FICO or VantageScore 4.0, while FHFA has indicated that existing tri-merge reporting and other credit reporting practices remain unchanged. Lenders should refer to FHFA and GSE guidance for current eligibility criteria, operational requirements, and timing for subsequent implementation phases, including FICO® Score 10T.
Docutech Implementation Resources:
Docutech has made system updates to support the use of VantageScore® 4.0. Details are available in the following compliance update:
https://compliance.docutech.com/document-update-new-vantagescore-4.0-credit-score-model-type
This update and other valuable compliance information can be found on Docutech’s compliance website at compliance.docutech.com. For more information about Docutech, please contact Peter Danahy.
Industry Resources: