Housing Agency Director Orders Fannie and Freddie to Accept VantageScore Over FICO
Federal Housing Finance Agency Director Bill Pulte directed Fannie Mae and Freddie Mac to let lenders use VantageScore instead of FICO.
Bill Pulte, director of the Federal Housing Finance Agency and former acting director of national intelligence, announced that Fannie Mae and Freddie Mac must permit lenders to use VantageScore as a credit-scoring alternative to FICO. He argued that FICO’s monopoly has driven up the price per credit score dramatically since 2020. According to Pulte, the early VantageScore rollout has been “incredibly successful,” with 50 lenders already delivering loans under the new system.
The directive takes effect immediately, removing any remaining restrictions on VantageScore usage. Pulte’s order aims to increase competition and lower costs in the mortgage market.
Why it matters
Allowing VantageScore could break FICO's dominance, potentially lowering credit-scoring costs for borrowers and lenders.
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