Fannie Mae and Freddie Mac announced Wednesday that they will begin accepting mortgage loans evaluated using VantageScore 4.0, a credit scoring model that factors in rent and utility payment histories, a shift that FHFA Director William Pulte said could benefit "tens of millions" of Americans trying to buy a home.
The move marks the first concrete step in a credit score modernization effort that has been stalled for years. Federal regulators approved both VantageScore 4.0 and FICO Score 10T back in 2022 after extensive testing, Fox Business reported. Yet until now, neither model had been put into practice for loans backed by the two government-sponsored enterprises that underpin the vast majority of American mortgages.
That four-year gap between approval and action tells you something about how Washington works, or doesn't. Pulte made clear whom he credits for breaking the logjam.
"It is only thanks to President Trump's landslide victory and leadership that we finally broke the gridlock to do this, what's right for the American people over Washington's special interest."
The initial rollout will begin on a limited basis with a group of approved lenders. During this phase, lenders may choose between VantageScore 4.0 and traditional FICO scores. Freddie Mac has already started testing: the agency has taken delivery of roughly $10 million in loans evaluated under VantageScore, and those loans are expected to be securitized.
The core difference is data. Traditional FICO scores rely heavily on credit card and loan repayment history. VantageScore 4.0 can incorporate rent payments, utility bills, and other recurring obligations that millions of Americans pay faithfully every month but that have never counted toward their creditworthiness.
For a renter who has paid on time for a decade, the old system offered no reward. Pulte put it simply at his Wednesday press conference: "If you paid your rent for 10 years, that should be factored into your credit score."
Jake Williamson, executive vice president and head of single-family at Fannie Mae, framed the shift in terms of both access and prudence. In a statement, Williamson said:
"By incorporating newer models with more predictive power, we can support sustainable access to homeownership and keep safety, soundness and operational readiness at the center."
That emphasis on "predictive power" matters. The argument is not that underwriting standards should be loosened. It is that the old scoring models were incomplete, missing reliable data points that could help responsible borrowers prove they are good risks. A more accurate picture of a borrower's payment habits should, in theory, reduce defaults rather than increase them.
The FICO Score 10T model, which also factors in positive and negative rental payment history when reported to credit bureaus, is expected to be introduced as part of the same modernization initiative. Between the two models, lenders will have more tools to evaluate applicants who might otherwise fall through the cracks of a system built around credit cards and car loans.
Pulte signaled the change last year in a post on X, writing that "credit history will no longer just include credit cards and loans." On Wednesday, he went further, predicting the shift would save borrowers money.
"So, I think it will save lots of money. And this truly is the golden age of home buying."
Newsmax reported that the expanded credit scoring models are intended to boost access to affordable mortgages and help more potential buyers qualify. The FHFA framed the change as delivering "the benefits of competition to homebuyers nationwide." The Department of Housing and Urban Development also indicated that the FHA will consider these alternative credit scores for mortgage underwriting, broadening the impact beyond conventional loans backed by Fannie and Freddie.
Any development that increases competition in the credit scoring market is worth watching. FICO has dominated mortgage underwriting for decades. Introducing VantageScore as a viable alternative gives lenders a choice, and gives FICO an incentive to innovate rather than coast on its monopoly position.
This policy change arrives at a moment when American homebuyers need every edge they can get. Record home prices and years of elevated mortgage rates have locked millions of would-be buyers out of the market.
The credit scoring overhaul alone will not solve the affordability crisis. But for borrowers who have dutifully paid rent and kept the lights on without building a traditional credit file, the difference between qualifying and being turned away could come down to whether those payments finally count.
Mortgage rates have shown some signs of easing. The thirty-year fixed rate recently dipped below 6% for the first time since September 2022, offering a glimmer of relief for buyers who have been waiting on the sidelines.
Still, the broader picture remains complicated. Analysts have noted that mixed market signals continue to shape buyer decisions in 2026, and some housing experts argue that supply constraints, not just financing costs, are the binding obstacle to homeownership.
Federal lawmakers have also taken notice. The Senate recently approved bipartisan housing affordability legislation by a lopsided 89, 10 vote, signaling that both parties recognize the depth of the problem even if they disagree on solutions.
Several details remain unclear. The FHFA has not disclosed which lenders are in the initial approved group, nor has it specified an exact timeline for expanding the rollout beyond the limited pilot phase. The precise underwriting changes that accompany VantageScore 4.0 adoption have not been spelled out publicly.
And while Pulte's estimate of "tens of millions" of affected Americans makes for a strong headline, no hard number or methodology has been released to back it up. Borrowers, lenders, and housing analysts will want to see real data as the pilot progresses, particularly on default rates, qualification rates, and whether the new scoring models hold up under stress.
There is also the question of how quickly the market adapts. Lenders are creatures of habit. Many have built their entire underwriting infrastructure around FICO. Switching, or even offering an alternative, requires system upgrades, staff training, and regulatory comfort. The $10 million in VantageScore-evaluated loans that Freddie Mac has taken delivery of is a start, but it is a rounding error in a multitrillion-dollar mortgage market.
For years, the federal government told Americans that responsible financial behavior would be rewarded. Pay your bills. Live within your means. Build a track record. But the credit scoring system that gatekept the biggest purchase most families ever make ignored an entire category of responsible behavior, monthly rent, while rewarding people who carried credit card balances.
The fact that regulators approved these newer models in 2022 and then sat on them for four years is a case study in bureaucratic inertia. Washington approved the tool, then left it in the drawer. It took a new administration and a director willing to push the button to finally put it to use.
Whether the rollout delivers on its promise depends on execution. But the principle is sound: if you pay your rent on time for a decade, the mortgage system should notice. That is not a radical idea. It is common sense, the kind Washington rarely gets around to.