Federal agencies on Wednesday took steps to bring newer credit scoring models into the mortgage underwriting process, marking a significant shift in how borrower risk is evaluated.

U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner announced the adoption of FICO 10T and VantageScore 4.0 for Federal Housing Administration (FHA) loans in the coming months, without providing more details. 

“I want to emphasize that this will benefit only applicants, again, that are creditworthy and trustworthy; we’ve been through a great financial crisis,” Turner said Wednesday in a media conference. “So, this is the rigor, it will stay in details ⇒

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