Mortgage insurers will be required to keep a larger safety net for mortgages originated using VantageScore 4.0 than for comparable loans using Classic FICO, according to new guidance from the government-sponsored enterprises (GSEs).

In late July, Fannie Mae and Freddie Mac published a new grid for their Private Mortgage Insurer Eligibility Requirements (PMIERs) that, for the first time, includes VantageScore 4.0 credit scores. The change comes as the mortgage industry transitions away from Classic FICO and toward newer credit-scoring models.

In a statement sent to HousingWire, a VantageScore spokesperson said that it’s not the company’s policy details ⇒

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