The Federal Housing Finance Agency (FHFA) announced on Thursday that the transition to new credit score requirements is expected to occur in the fourth quarter of 2025, a decision commended by the mortgage industry. 

That’s when the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac will acquire single-family loans based on the FICO 10T and VantageScore 4.0 credit models, replacing the Classic FICO score that has been in place for decades. The GSEs will also transition from a tri-merge system to a bi-merge system at that time. 

“Following extensive stakeholder engagement and input, FHFA is aligning the implementation date of the bi-merge details ⇒

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