Mortgage Lenders Now Cleared to Use VantageScore 4.0 Alongside FICO

Mortgage lenders working with Fannie Mae and Freddie Mac, the government-sponsored enterprises that back most U.S. home loans, now have permission to use VantageScore 4.0 as a credit assessment tool, according to CNBC.

The change marks a potential shift in how lenders evaluate borrower creditworthiness, though FICO scores remain the dominant standard in the mortgage industry.