Mortgage lenders are currently wrestling with a high-stakes puzzle: how to accurately compare the new credit score models hitting the market. The differences are significant and carry major implications for risk assessment, loan pricing and secondary market returns.

In late April, the Federal Housing Finance Agency (FHFA) rolled out a program allowing the exclusive use of VantageScore 4.0 for loans delivered by a group of lenders to the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The future use of FICO 10T will also act as an alternative to the long-standing FICO Classic.

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