The Federal Housing Finance Agency is now directing Fannie Mae and Freddie Mac to permit approved lenders to choose between two credit score models—Classic FICO and VantageScore 4.0—for loans sold to the government-sponsored enterprises, ending a decades-long monopoly that saw mortgage loans delivered to the GSEs require credit scores from a single model, the “Classic FICO” model. On April 22, 2026, FHFA and the GSEs announced that approved lenders may now use VantageScore 4.0 alongside Classic FICO for current Enterprise deliveries, with FICO Score 10T planned for future adoption.
The shift represents one of the most significant structural shifts in mortgage underwriting in decades, introducing lender choice in credit scoring while setting the stage for broader borrower access. But it also creates new complexities for lenders who must now navigate competing pricing models, operational workflows, and risk management frameworks—all while FICO pricing has surged and the industry awaits final implementation details for a third scoring model.
Twenty-one large mortgage lenders are part of the first wave that will use VantageScore 4.0, and Freddie Mac has already taken $10 million in loans approved using VantageScore 4.0. Yet adoption remains uneven, pricing uncertainty persists, and lenders face difficult decisions about which model to use on a loan-by-loan basis.
The new landscape
What’s changing and when
Three credit scoring models are now in play, each on a different timeline
On October 24, 2022, FHFA announced the validation and approval of two new credit score models, FICO 10T and VantageScore 4.0, for use by the Enterprises. The original plan called for lenders to deliver both models in a “bi-merge” system, but that approach was scrapped in favor of lender choice.
VantageScore 4.0 became immediately available to approved lenders starting April 22, 2026, while the enterprises published historical FICO 10T credit score data on July 1, 2026, but will not adopt scores from the model until a later date. The Enterprises expect to publish similar historical scores corresponding to FICO 10T in Summer 2026, which will support the eventual use of FICO 10T for loans they acquire.
The transition is happening in stages. The broader transition—including system updates, AUS integration, and lender adoption—is expected to continue through 2026 as the industry works toward full operational readiness. For now, lenders can choose whether and when to adopt the new model, meaning FICO will remain firmly in the mix for the foreseeable future.
Key differences in the new models
Both new models use trended data, meaning they examine payment patterns over the past 24 months rather than relying on a single snapshot of credit behavior. Both FICO 10T and VantageScore 4.0 incorporate traditional credit repayment data as well as alternative data such as rent, utilities, and telecom repayment data. VantageScore estimates that approximately 5 million prospective buyers will benefit from the new credit modeling, though a May 2026 white paper by actuarial firm Milliman, commissioned by FICO, found that FICO Score 10T outperformed VantageScore 4.0 in predicting mortgage default risk across nearly 20 million mortgages.
The cost equation
Pricing battles and rising expenses
Credit report costs have exploded as FICO raises prices and bureaus compete
While the regulatory shift aims to foster competition, lenders and borrowers are experiencing dramatic cost increases. CHLA says FICO’s base price for a tri-merge mortgage credit report increased from $1.80 in late 2022 to $30 in 2026. Based on a survey of the association’s independent mortgage bank members, the group said total credit report costs associated with closing a conventional loan have risen from about $50 in 2022 to roughly $540 in 2026.
FICO has more than doubled its previously disclosed pricing for 2026, raising prices from $4.95 to $10, a move that is a continuation of FICO’s established pattern of aggressive pricing actions from their historical sole source position in the Mortgage space—with pricing increases made at a CAGR of 150% over the past 4 years. Equifax characterized the increase as “another example of FICO flexing its monopoly pricing power”.
The bureaus have responded with aggressive pricing for VantageScore 4.0. TransUnion cut VantageScore 4.0 pricing to $0.99 per score for mortgage lenders and will continue offering it free with the purchase of a FICO score through 2026. Experian last week also announced a price reduction for VantageScore 4.0 to roughly one-third of the price of a FICO score, down from about 50%.
FICO has countered with a new direct licensing program. Under this program, tri-merge resellers have the option to calculate and distribute FICO Scores directly to their customers, eliminating reliance on the three nationwide credit bureaus. FICO reduced the upfront price of FICO Score 10T to $0.99 plus a $65 funding fee, aiming to drive broad adoption by making the product more accessible to lenders.
What borrowers are paying
Bingham shared one example of pricing that showed a 40.4% year-over-year increase in the specific cost for a basic tri-merge report, going to $47.05 in 2026 from $33.50 last year for an individual applicant. Lenders typically pull a borrower’s credit report twice in the home-purchase process—once at application and again just before the loan closes to ensure nothing significant has changed. So, if a lender did a tri-merge report both times, the above amount would be double for an individual, at $94.10. The official FHFA credit score policy page is available at fhfa.gov/policy/credit-scores.
Operational challenges
The risks lenders now face
Choice brings complexity in workflows, pricing grids, and loan delivery
The shift from a single mandated model to lender choice introduces operational risks that many lenders are still working to address. Adoption of VantageScore has been slow, however, partly because there is no pricing grid attached to the model when loans are delivered to the government-sponsored enterprises, credit report resellers told HousingWire.
Lenders must choose either Classic FICO or VantageScore 4.0 for each loan—they cannot mix models on the same application. This creates a strategic decision point: which model will produce the best outcome for each borrower? This guide explains how FICO and VantageScore 4.0 actually differ, where they agree, why the same borrower can score 10 to 30 points apart on the two models, and what each difference means for the borrowers in your pipeline.
Tri-merge credit reporting remains in place, allowing lenders to evaluate how this new option fits within their current workflow, systems, and vendor relationships. But lenders must update their automated underwriting systems, train staff on the differences between models, and establish protocols for model selection. Some observers downplayed the immediate impact, noting that the rollout will begin as a limited pilot program. Jennifer McGuinness, CEO of Pivot Financial, told HousingWire that the announcement “is really nothing new,” pointing to indications that only a small group of lenders will initially participate and that many operational details remain unclear.
Mortgage insurance companies and investors also need to adjust their pricing and risk models. The lender choice system may improve transparency for investors in the mortgage-backed securities markets issued by the Enterprises. Specifically, credit scores are informative of both credit risk, the risk of borrowers repaying late or not at all, and prepayment risk, the risk borrowers will repay their mortgages ahead of schedule.
For borrowers seeking mortgage financing, the changes could expand access—particularly for first-time homebuyers with limited traditional credit history. One of the most significant changes is VantageScore 4.0’s ability to score consumers who lack recent credit activity. Under Classic FICO, you need at least one account reported to a credit bureau within the past six months to generate a score. VantageScore 4.0 eliminates this requirement. Those looking for down payment assistance or navigating credit challenges may find new opportunities as lenders adopt the newer models.
Quick answers
Credit scoring changes: common questions
Do I need a different credit score now to buy a house?
Not necessarily. For most borrowers, the hurdle has been a FICO score of 620 for a conventional loan. That requirement is now all but obsolete. Lenders can now choose VantageScore 4.0, which may score you differently than Classic FICO. The model your lender selects could directly impact your qualification. If you have a thin credit file or pay rent and utilities on time, VantageScore 4.0 may work in your favor.
Which credit score model will my lender use?
Lenders can choose whether and when to adopt the new model, meaning FICO will remain firmly in the mix for the foreseeable future. Only lenders in the Fannie Mae or Freddie Mac limited rollout for approved lenders can use VantageScore 4.0. Lenders outside the limited rollout must continue to use Classic FICO from each bureau through a tri merge credit report until VantageScore 4.0 is made broadly available. Ask your lender directly which models they accept.
Will credit reports cost me more as a borrower?
Possibly. While lenders typically pay for credit reports upfront, those costs are often passed to borrowers at closing. Total credit report costs associated with closing a conventional loan have risen from about $50 in 2022 to roughly $540 in 2026. The exact amount depends on your lender’s pricing and which scoring models they use. Some lenders may absorb part of the increase; others will pass it through entirely.
Does VantageScore 4.0 include my rent payments?
Yes. Both FICO 10T and VantageScore 4.0 incorporate traditional credit repayment data as well as alternative data such as rent, utilities, and telecom repayment data. However, your rent payments must be reported to the credit bureaus to be included. Not all landlords or property management companies report rent payments. Services like RentTrack or PayYourRent can help you get rent payment history onto your credit report.
When will FICO 10T be available for mortgages?
The enterprises published historical FICO 10T credit score data on July 1, 2026, but will not adopt scores from the model until a later date. The Enterprises expect to publish similar historical scores corresponding to FICO 10T in Summer 2026, which will support the eventual use of FICO 10T for loans they acquire. No firm implementation date has been announced, but industry observers expect it later in 2026 or early 2027.
Can I choose which credit score model my lender uses?
No. Lenders must choose either Classic FICO or VantageScore 4.0 for each loan—they cannot mix models on the same application. The lender makes the choice, not the borrower. However, you can shop among lenders and ask which models they use. If one lender uses VantageScore 4.0 and it scores you higher than Classic FICO, you may get better terms with that lender.