FHFA Answers Credit Questions… Kind of

Welcome back, Dreammakers, to Today in Mortgages! In this episode, hosts Michael and Richard have more clarification on the VantageScore 4.0 roll out. The FHFA shared an FAQ that helps explain some questions we had. What we have learned is yes, there will be options for using your best credit score, but there could be a competitive fee for that. And, as a lender we can chose which scoring system to apply to different loans. This is good for consumers, more options, and good for lenders because there’s more ways to look at these scores. But we are wondering if there is a possibility that competition will make the companies loosen standards and open the door to unsavory loans. The answer we believe is no, it’s not its making loans better, instead it’s making credit scores more “real time” as this new model is using more recent data. Listen in as we discuss this and more.

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