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Mortgage credit scoring options are expanding. Fannie Mae and Freddie Mac have broadened access to VantageScore® 4.0 for eligible conventional loans, while the Federal Housing Administration (FHA) is preparing to accept VantageScore 4.0 and FICO® Score 10T alongside Classic FICO beginning January 1, 2027.
These developments do not mean Classic FICO is disappearing. They do mean lenders should evaluate how additional scoring options fit into their origination processes—and distinguish requirements already in effect from changes that require preparation.
Effective September 9, 2026, Fannie Mae and Freddie Mac expanded VantageScore 4.0 availability to all approved lenders and Sellers for eligible loans, without prior written approval.
For Fannie Mae loans, lenders electing to use VantageScore 4.0 must request that model from each of the three nationwide credit repositories when ordering a new credit report. Existing requirements addressing unavailable scores, insufficient credit information, and frozen credit continue to apply. The same scoring model must be used for all borrowers on a single loan.
Fannie Mae permits VantageScore 4.0 for eligible loans underwritten through Desktop Underwriter® (DU®). Manually underwritten loans must continue to use Classic FICO. Lenders must also ensure that the scoring model used for underwriting and pricing is accurately reflected in loan delivery data and that required credit information is retained in the loan file.
On September 30, 2026, Fannie Mae announced the alignment of loan-level pricing adjustments across Classic FICO and VantageScore 4.0. The changes apply to whole loans purchased on or after October 1, 2026, and loans delivered into mortgage-backed securities with issue dates on or after that date.
Freddie Mac also announced alignment of credit fees across the two models. Lenders should review the applicable agency guidance and confirm that pricing and delivery processes reflect current requirements.
FHA has announced January 1, 2027, as the implementation date for accepting VantageScore 4.0 and FICO Score 10T in addition to Classic FICO for Title II forward mortgage programs scored through its TOTAL Mortgage Scorecard. The announced transition applies to case numbers assigned on or after that date.
FHA’s Alternative Credit Scores Preparedness Guide states that its tri-merge credit report requirement will remain unchanged. All borrowers on a loan must be scored using the same credit score model or models.
The guide also explains an important operational distinction: when multiple scoring models are submitted to TOTAL, each must receive an Accept recommendation for the transaction to receive an overall Accept. Lenders should review these requirements with their credit providers and automated underwriting system partners as part of implementation planning.
Classic FICO remains available. Use of VantageScore 4.0 for eligible GSE loans is optional, and lenders may continue using Classic FICO under applicable requirements.
FICO Score 10T is not currently eligible for Fannie Mae loan delivery. Lenders should avoid treating approval of a scoring model as equivalent to availability for every loan program or delivery channel.
For FHA, preparedness guidance does not authorize lenders to begin using the new models immediately. Mortgagees should continue following existing credit-report policy in HUD’s Single Family Housing Policy Handbook 4000.1 until updated guidance is published and the January 1, 2027, implementation is in effect.
This is a phased expansion of credit scoring options. Eligibility, timing, and operational requirements remain program-specific.
Determine whether and when your institution intends to adopt VantageScore 4.0 for eligible conventional loans. Identify the loan programs, channels, and business processes affected, and assign responsibility for implementation.
For FHA lending, use the remainder of 2026 to prepare for the announced transition while monitoring formal policy updates.
Discuss readiness with credit providers, loan origination system providers, automated underwriting system providers, and other relevant technology partners.
Confirm how scoring models will be ordered, identified, transmitted, and retained throughout the lending workflow. Test that required information carries through underwriting, pricing, and loan delivery accurately.
FHA has published an Alternative Credit Scores Preparedness Guide and technical resources for TOTAL Scorecard integration to support this work.
Review underwriting, pricing, loan delivery, and quality-control procedures for changes needed to support additional scoring models.
Establish clear policies governing model selection and use, including consideration of potential fair lending implications. Train affected staff on program-specific requirements and document how exceptions and implementation issues will be addressed.
As part of implementation planning, review proprietary disclosures, credit-score notices, and other system-generated communications for references to particular scoring models.
Assess whether updates are needed to keep those communications consistent with the credit information used in the transaction and applicable disclosure requirements.
Additional scoring options create decisions that extend beyond ordering a credit report. Lenders should understand how model selection affects their systems, procedures, controls, and borrower communications.
A coordinated approach can help institutions adopt new options while maintaining consistent practices across the origination process. The priority is to understand what each program permits today, prepare for announced changes, and keep implementation plans aligned with current agency guidance.
Questions about what these developments could mean for your lending operations? Connect with our team.
Information current as of October 5, 2026.
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