A few weeks ago, I wrote about Fannie Mae and Freddie Mac (finally!) updating their underwriting programs to accept the updated FICO 10T and Vantage 4.0 credit scores.
All this time, for decades, the big mortgage lenders have stuck with FICO 2, 4, 5 — never upgrading to any of the changes.
Finally, Congress told them to get with it and update, because the new scoring systems are both more accurate and fairer to all people. So October 23, they announced they are now accepting FICO 10T and Vantage 4.0. However…
The mortgage lenders need time to change their credit report software, so this has not yet happened.
No firm date has been announced, but one national credit reporting agency has given the timeline of two years. I called the two largest wholesale mortgage lenders in the nation and asked them for a date. Both told me, “I will check and get back to you.” It’s been three days and no word has come back. I take this to mean “we don’t know.”
When it does happen, I will post an update. In the meantime, we can be thankful this change is coming. The newer scoring system is predicted to help tens of thousands more people become home owners, especially people with thin credit files.
Happy Thanksgiving, everyone! I will be back with more news next week.