Story perspectives

Fannie Mae, Freddie Mac Adopt VantageScore 4.0, FICO Shares Plunge

7/9/2025

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Summary

Story summary

Fannie Mae and Freddie Mac have adopted VantageScore 4.0 for loan submissions, effective immediately.
This move aims to boost competition and reduce mortgage costs, in line with President Trump's directive.
VantageScore 4.0 uses alternative data, potentially improving access for borrowers with limited credit histories.
Following the announcement, FICO's stock dropped over 14%, while major credit bureaus saw share increases.
Cost impacts will hinge on competition between VantageScore and traditional metrics like FICO.

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Story summary

Fannie Mae and Freddie Mac have adopted VantageScore 4.0 for loan submissions, effective immediately.
This move aims to boost competition and reduce mortgage costs, in line with President Trump's directive.
VantageScore 4.0 uses alternative data, potentially improving access for borrowers with limited credit histories.
Following the announcement, FICO's stock dropped over 14%, while major credit bureaus saw share increases.
Cost impacts will hinge on competition between VantageScore and traditional metrics like FICO.