Rocket Mortgage has announced a significant shift in its credit scoring practices that aims to help more Americans qualify for home loans. This change is facilitated by the introduction of VantageScore 4.0 as the preferred credit scoring model.
VantageScore 4.0 Adoption: Rocket Mortgage will use VantageScore 4.0 for mortgages to be delivered to Fannie Mae, Freddie Mac, and Veteran Affairs loans starting in the fourth quarter of 2026.
Benefits of New Model: Director of the Federal Housing Finance Agency, Bill Pulte, commended Rocket Mortgage for being the first lender to adopt this model, attributing it to efforts for increased competition in credit scoring, which he says is beneficial for Americans achieving homeownership.
Cost Savings: Individuals using the VantageScore 4.0 model reportedly saved an average of $1,600 on closing costs. This model allows the consideration of rent and utility payment histories, thus assisting those with limited credit histories.
Company Statements: Rocket Mortgage CEO Jay Bray emphasized the importance of competition in the mortgage industry, noting that this change will lower costs and expand access to homeownership. He thanked Director Pulte for supporting diverse credit scoring methods.
The introduction of VantageScore 4.0 by Rocket Mortgage represents a shift towards more inclusive and affordable credit scoring practices. This change aims to help more Americans qualify for mortgages and reduce costs, supporting broader access to homeownership.
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