The way that mortgage lenders assess credit risk is undergoing its biggest overhaul in decades as the Federal Housing Finance Agency (FHFA) is preparing to roll out a new framework that allows lenders to use two scoring models — FICO 10T and VantageScore 4.0.

FHFA Director Bill Pulte and the Trump administration have voiced support for more competition by allowing the government-sponsored enterprises (GSEs) to adopt alternative credit models. In July, Pulte announced via social media that Fannie Mae and Freddie Mac would accept VantageScore 4.0 immediately.

On the horizon, too, is an eventual shift from the long-standing tri-merge credit details ⇒

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