Member Banks Can Now Use the VantageScore 4.0 Credit Score to Originate Loans for Millions of New Creditworthy Borrowers
SAN FRANCISCO and DALLAS, Jan. 21, 2025 -- VantageScore today announced that the Federal Home Loan Bank of Dallas now accepts mortgage collateral originated by lenders using VantageScore 4.0 credit scores. Pursuant to the 2018 Credit Score Competition Act signed into law by President Trump, the FHFA was directed to evaluate alternative credit scores to modernize mortgage underwriting to include more credit-worthy borrowers. The FHFA mandated the use of VantageScore 4.0 for government-sponsored mortgage entities Fannie Mae and Freddie Mac starting in 2025.
The decision announced today by the mortgage government-sponsored FHLB Dallas enables its over 800 member banks and institutions to take advantage of the VantageScore 4.0 credit score to include approximately 33 million more consumers nationwide, including 6 million within the FHLB Dallas region. Other government-sponsored mortgage entities that now accept VantageScore 4.0 for mortgages include The Federal Home Loan Bank of New York, The Federal Home Loan Bank of Chicago, The Federal Home Loan Bank of San Francisco, and the Veterans Administration.
"The Federal Home Loan Bank of Dallas is pleased to provide this option to our members. This initiative reflects our commitment to supporting homeownership across our District and providing our members with a wider range of tools to serve their communities," said FHLB Dallas President and CEO Sanjay Bhasin.
"The Federal Home Loan Bank of Dallas' decision to accept mortgage collateral originated using VantageScore 4.0 marks a pivotal step to modernize mortgage underwriting and increase financial opportunities for creditworthy individuals," said Anthony Hutchinson, EVP of Government and Industry Relations at VantageScore. "VantageScore is the credit-score innovation leader in government-sponsored mortgage underwriting and is humbled to have received broad bipartisan support as well as acceptance from most of the leading government-sponsored mortgage entities."
In October 2022, the Federal Housing Finance Agency – the regulator of the Federal Home Loan Bank System and for Fannie Mae and Freddie Mac – announced its approval of VantageScore 4.0 for Fannie Mae and Freddie Mac. VantageScore estimates that using the VantageScore 4.0 credit model will result in approximately 33 million more consumers nationwide having access to a credit score that may aid them in obtaining a mortgage. This includes an estimated 6 million consumers within the FHLB Dallas footprint, which comprises Arkansas, Louisiana, Mississippi, New Mexico and Texas.
More information on implementing VantageScore 4.0 for mortgages is available here.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $129.4 billion as of September 30, 2024, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 800 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit fhlb.com.
About VantageScore®
VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive, and inclusive credit score models. In 2023, usage of VantageScore increased by 42% to more than 27 billion credit scores. More than 3,400 institutions, including 8 of the top 10 banks, use VantageScore credit scores to provide consumer credit products including credit cards, auto loans, personal loans and mortgages. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.
VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.
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