Analyses indicate the newly released pricing grids could make loans more expensive with VS 4.0
Fannie Mae and Freddie Mac have released official mortgage pricing grids for Classic FICO and VantageScore 4.0 as FHFA expands VantageScore loan delivery to all lenders.
Under the new grids, borrowers using VantageScore need scores 20 points higher to qualify for the equivalent FICO pricing tier. For example, the highest purchase tier requires a Classic FICO score of at least 780 or a VantageScore of at least 800. Early third-party analyses suggest this approach could mean higher borrower costs in many scenarios, particularly cash-out refinances.
The GSEs expect competition between the scoring models to lower credit reporting and borrowing costs over time. They also anticipate that newer models, which consider rent payments and credit trends, could expand mortgage access for borrowers with limited credit histories.