Equifax Statement on FHFA and HUD Announcement on the New Era of Credit Score Co ...

Equifax is proud to support the American dream of homeownership and understands this is an important goal for U.S. consumers, which can help build wealth that can last for generations. This is an important part of our company's purpose: to help people live their financial best.

Equifax is deeply committed to supporting the mortgage industry and the consumers it serves. We applaud the announcement made by Federal Housing Finance Administration (FHFA) Director Bill Pulte and U.S. Department of Housing and Urban Development Secretary Scott Turner to permit the use of VantageScore 4.0 and FICO 10T as eligible credit scoring models for FHA-insured mortgage underwriting, and for Government-Sponsored Enterprises to immediately accept VantageScore-scored loans from approved lenders.

More data drives better decisions and this landmark shift toward credit scoring competition is a vital step in modernizing the mortgage industry, reducing loan acquisition costs for consumers, driving a potential $1 billion industry cost savings, and simultaneously opening up new homeownership opportunities for millions of Americans.

Full adoption of VantageScore 4.0 will help drive the next generation of mortgage lending by enabling a more complete financial picture of each borrower. As the FHFA and HUD have indicated, it is critical that alternative data-such as rent, utilities, and telecommunications payments-are considered as part of credit scores to offer a more comprehensive and "360-degree" view of a consumer's financial profile. And it is also important to evaluate changes in credit data over time for a fuller financial picture. VantageScore 4.0 analyzes up to 24 months of trended data, helping lenders identify qualified borrowers with "thin" credit files while maintaining the highest standards of safety and soundness.