Credit scoring models are modernizing in 2026 with new options for mortgage lenders, as federal housing agencies expand beyond the long-dominant Classic FICO score. On April 22, 2026, the Federal Housing Finance Agency (FHFA), along with Fannie Mae and Freddie Mac, announced that approved lenders can now use VantageScore 4.0 immediately when delivering loans to the government-sponsored enterprises, with FICO 10T planned for future use.
The shift represents a major milestone in credit score modernization, directed by the 2018 Credit Score Competition Act. “We are modernizing credit scoring with more predictive models, helping millions of Americans who responsibly pay rent qualify for mortgages,” the FHFA stated when announcing the initiative. Fannie Mae is initially rolling out VantageScore 4.0 to approved lenders through a limited pilot before broader availability, while the Department of Housing and Urban Development adopted both FICO 10T and VantageScore 4.0 for Federal Housing Administration loans.
The new models differ fundamentally from Classic FICO by incorporating trended data—payment history tracked over 24 months—and alternative data sources such as on-time rent and utility payments. These additions allow lenders to assess borrower creditworthiness more comprehensively, potentially scoring millions of Americans with thin credit histories who might not qualify under older models. VantageScore 4.0 scores approximately 33 million more consumers than FICO 10T, according to research released in May 2026.
Both Fannie Mae and Freddie Mac will publish historical credit score data for the new models this summer to help the industry transition. Fannie Mae will release historical FICO 10T scores for loans acquired between April 2013 and September 2025, as well as additional VantageScore 4.0 data spanning April 2023 through September 2025. This data release allows market participants to analyze score distributions and model performance before full implementation.
The competition enabled by multiple approved scoring models is expected to drive down mortgage costs. Research from VantageScore indicates that credit score competition could reduce mortgage costs by nearly $1 billion, with individual loans potentially saving up to $132 in fees. TransUnion similarly estimated that VantageScore 4.0 adoption could unlock nearly $800 million in mortgage cost savings. To accelerate adoption, Equifax priced VantageScore 4.0 mortgage credit scores at $4.50 for two years—more than 50% below FICO pricing—and offered free VantageScore 4.0 scores through the end of 2026 to all mortgage lenders.
The modernization effort reflects a broader shift toward expanding access to credit. Newer models reward on-time payment of rent and utilities, which can help renters and young adults build credit profiles that qualify them for mortgages. The Mortgage Bankers Association called the move “an important step toward a more competitive, innovative, and resilient housing finance system,” noting that it supports sustainable homeownership access while maintaining safety and soundness.
Lenders approved for the VantageScore 4.0 pilot may now use scores from each of the three major credit bureaus through a tri-merge credit report. Those not yet approved must continue using Classic FICO until VantageScore 4.0 becomes broadly available. The interim approach allows the industry to test operational readiness while competition gradually increases, with FICO 10T expected to follow once the Enterprises publish historical data and complete their implementation timeline.
Sources
- Fannie Mae — Announced April 22, 2026, that VantageScore 4.0 is effective immediately for approved lenders and FICO 10T will be used in the future
- FHFA (Federal Housing Finance Agency) — Confirmed the validation of VantageScore 4.0 and FICO 10T in October 2022 and announced their implementation on April 22, 2026
- ABA Banking Journal — Reported that HUD adopted FICO 10T and VantageScore 4.0 for FHA loans on April 22, 2026
- VantageScore — Reported in May 2026 that VantageScore 4.0 scores approximately 33 million more consumers than FICO 10T, and in March 2026 that credit score competition could reduce mortgage costs by nearly $1 billion
- TransUnion — Estimated in April 2026 that credit score competition could unlock nearly $800 million in mortgage cost savings
- Equifax — Announced in October 2025 that VantageScore 4.0 would be priced at $4.50 for two years, more than 50% below FICO
