WASHINGTON— Fannie Mae and Freddie Mac said Wednesday they are beginning the next phase of the federal government’s long-running credit score modernization effort, with both government-sponsored enterprises moving to accept mortgage loans evaluated using VantageScore 4.0 through limited rollouts with approved lenders, while laying the groundwork for future use of FICO Score 10T.
The announcements mark a significant operational milestone for lenders—including credit unions active in mortgage lending and secondary market sales—as the GSEs begin shifting away from the long-standing reliance on Classic FICO scores. Both companies said lenders in the initial rollout can use VantageScore 4.0 via tri-merge credit reports for new originations delivered to the GSEs, while non-participating lenders must continue using Classic FICO for now.
Fannie Mae said the change is effective immediately for approved lenders and that it also plans this summer to publish historical credit score data tied to both VantageScore 4.0 and FICO Score 10T to help lenders and other market participants prepare for broader adoption. Freddie Mac similarly said publication of historical data for FICO Score 10T is expected this summer as part of its own implementation work, signaling that both enterprises are moving in tandem under FHFA’s modernization initiative.
Both GSEs emphasized that the newer models are designed to increase competition and improve risk analytics by incorporating broader data, including trended credit behavior and, in some cases, on-time rent payment history—changes they said could help more consumers be scored accurately and potentially lower costs over time. For credit unions, the shift could eventually expand access to mortgage credit for members with thinner or less traditional credit files, while also requiring underwriting, compliance and vendor systems to adapt as the market transitions.
The move follows years of federal work on credit score reform after Congress passed the Credit Score Competition Act in 2018, which directed the Federal Housing Finance Agency to create a process for validating alternative scoring models for the GSEs. FHFA approved VantageScore 4.0 and FICO Score 10T in 2022, and Wednesday’s announcements represent the clearest sign yet that implementation is beginning to move from policy approval to lender-level execution.
For now, both companies stressed the rollout will remain limited as they test operational readiness before broader market availability.