The full explanation
The FHFA, the federal agency in charge of Fannie Mae and Freddie Mac, approved the VantageScore 4.0 version, which takes into account additional sources of data, such as rent payment history. Today, for mortgages sold to those two companies, lenders may use VantageScore 4.0 or Classic FICO, but they must use the same model for every borrower on the same loan.
An example
Hugo's lender uses VantageScore for his application. Because Hugo and his wife are applying together, the same model is used for both of them.
You will see it in…
- The lender's explanation of the score it used
- Apps and sites that show your score and the model behind it
- FHFA, Fannie Mae and Freddie Mac notices about scoring models
