The War on Credit Report Monopolies are over! Plus More!

The FICO Credit Monopoly on Mortgages is Over!  

1. Vantage Credit Score Model an Alternative to the FICO Model is greenlighted by all Mortgage Agencies

After years of slow rollout, FHFA and HUD jointly announced that VantageScore 4.0 is now accepted by Fannie Mae and Freddie Mac, with FHA moving to adopt the model. Fannie Mae has updated their selling guides to accept the change immediately.

VantageScore 4.0 uses trended credit data and can factor in rent and utility payment histories, giving creditworthy borrowers who've been invisible under legacy FICO models a path to qualification.

The move also introduces acutal competition into a credit scoring market that FICO has dominated for decades, this could reduce costs for lenders and expand access to mortgage credit. FICO 10T is also being advanced alongside VantageScore 4.0.

What this means:
Credit score costs could be dropping in the future as competition is introduced. Along with many buyers who were invisible to the old credit scoring system may have hope to get approved. Vantage is expected to be rolled out to every lender, not those who signed up for early onboarding in Q4 of 2026. But I, with access to lenders all over, should have access as soon as it is available.

2. Something to watch: Flood Insurance Premiums Rising

Although Fargo has fewer and fewer houses at risk with Flood Insurance due to the dikes being built. FEMA has released a new scoring system of flood risk causing flood insurance to rise for about 80% of policy holders.

This is making it for those thinking of buying in a flood zone to directly get a quote on the house before they even put in an offer.

3. Agent Tip worth Sharing

During a trip out for some training I was talking with an agent about what is working in her market and got some great insight about open houses!

This particular agent when doing an open house always took 15 to 20 minutes do a Facebook Live of the house!

She said if the open house was slow, she could always get 10 people or so to watch her Facebook live and it was posted to her account for people to watch later!

Something to keep in mind next time you are at an open and it is slower then usual!