Mortgage lenders are beginning to put expanded credit score choice into practice, with credit reporting provider Informative Research reporting that its clients are actively using both Classic FICO and VantageScore 4.0 to evaluate mortgage applications.
The Stewart-owned company announced Monday that it has upgraded its technology infrastructure to support multiple credit scoring models, allowing lenders to select a model for individual loans or obtain both scores on a single credit report.
The development comes two months after Fannie Mae and Freddie Mac opened VantageScore 4.0 to all approved lenders, accelerating a shift that could give loan originators more flexibility when working with borrowers whose credit profiles fall near qualification or pricing thresholds.
Informative Research said it completed its GSE-related technology upgrades in August, following modernization work that began in 2023. Its credit platform now supports loan-level model selection and multiple billing arrangements, while additional automation tools are under development.
"IR has prioritized modernization for years now, so we're well prepared to execute changes regarding credit models quickly, without disruption and with the ability to support multiple billing models at one time," said Informative Research President Matt Orlando. "Our clients are already putting that flexibility to work, and we're developing additional tools to make credit model management even more efficient."
Credit Score Competition Moves Into Production
The announcement adds to growing evidence that the mortgage industry's transition to competing credit scoring models is moving beyond regulatory approvals and into everyday lending operations.
Since the Federal Housing Finance Agency expanded VantageScore 4.0 eligibility across the government-sponsored enterprises on Sept. 9, several major lenders have broadened their use of the model.
Rocket Mortgage moved to make VantageScore its preferred model for conventional lending after reporting average closing savings of approximately $1,600 among borrowers who benefited from its use.
CrossCountry Mortgage subsequently expanded its VantageScore eligibility, reporting estimated average savings of $2,500 for qualifying borrowers who benefited from the alternative model.
More recently, United Wholesale Mortgage extended VantageScore eligibility into select non-agency products, including jumbo, bank statement, investor, and home equity loans. The expansion brought alternative scoring into lending categories where minimum credit score requirements can play a significant role in determining borrower eligibility.
Those developments have placed greater emphasis on the systems lenders use to obtain, compare, and apply credit scores.
Informative Research's upgraded platform addresses that operational side of the transition, giving lenders the ability to manage different scoring models within their existing credit reporting workflows.
What It Means
For brokers and LOs, the growing availability of competing scoring models creates additional options when evaluating borrowers, particularly those near minimum credit score requirements.
A borrower who falls short of a lender's threshold under Classic FICO could potentially qualify using VantageScore 4.0, depending on the borrower's credit profile, the lender's guidelines, and the applicable loan program.
Different scores can also affect loan-level pricing adjustments and borrower costs, although a higher score under one model does not automatically translate into better loan terms.
Originators may increasingly need to consider which models their lending partners accept, how those models are applied, and whether obtaining additional scores provides a meaningful benefit on a particular file.
Under current GSE guidance, lenders can choose between Classic FICO and VantageScore 4.0 on eligible loans without seeking prior approval. The same model must be used for every borrower on a given loan.
Classic FICO remains available and continues to be required for manual underwriting. The GSEs have not announced a retirement date for the longstanding model.
FHA Expansion Adds Another Deadline
The next major milestone arrives Jan. 1, 2027, when the FHA is scheduled to begin accepting VantageScore 4.0 and FICO Score 10T from approved lenders.
Informative Research said its platform is already prepared to support FICO 10T, positioning the company to accommodate the additional scoring model when FHA acceptance begins.
The GSEs, meanwhile, have not established an implementation date for FICO 10T.
"Modernizing credit scoring is a complex process with many milestones to navigate," Orlando said. "As the FHA and GSE timelines unfold, we will be working alongside our clients to support their model policies and operational decisions as we help them assess how loan-level score selection affects their business."
The expansion also comes amid intensifying competition among credit scoring providers and credit bureaus, which have introduced new pricing arrangements and tools aimed at encouraging lender adoption of alternative models.
For lenders, supporting multiple models introduces additional considerations around credit reporting costs, underwriting workflows, investor requirements, and borrower pricing.
For originators, the immediate value lies in understanding which scoring options are available through their lending partners and when those options could help a borrower qualify or secure more favorable terms.
