Rocket Mortgage and Rocket Pro have begun utilizing VantageScore 4.0 alongside Classic FICO in the mortgage qualification process.
The rollout comes as the Federal Housing Finance Agency (FHFA) continues piloting the use of VantageScore 4.0 in agency-backed mortgage lending.
VantageScore 4.0 incorporates expanded data inputs — including rent, utility, and telecom payment histories — while also evaluating “trended” credit behavior over a 24-month period instead of relying solely on a single snapshot of a borrower’s credit profile.
According to VantageScore, the model could potentially score up to 33 million additional consumers who may not be scoreable under traditional models.
“Rocket is giving more people than ever a fair shot at homeownership by leveraging diversified credit scoring,” said Heather Lovier, chief operating officer of Rocket Companies. “Our evolving economy requires a more modern approach to evaluating credit, and VantageScore 4.0 uses an updated methodology designed to create a more inclusive view of creditworthiness.”
Industry Transition Moves From Policy To Production
Mortgage lenders have traditionally relied on older “Classic FICO” models for agency-backed mortgage underwriting, even as credit scoring in other consumer lending sectors has evolved considerably over the last decade.
The newer models are designed to account for a broader range of financial behaviors, including whether borrowers consistently pay rent on time and how they manage revolving balances over time. Advocates say that could help expand mortgage access for first-time buyers, renters, and consumers with limited traditional credit histories.
Rocket’s announcement marks another milestone in the industry’s transition from regulatory approval to real-world implementation.
The lender said participating institutions have already delivered approximately $10 million in loans to Freddie Mac using the updated scoring framework, an early indicator that the secondary market infrastructure supporting VantageScore adoption is beginning to take shape.
The development follows recent moves by the FHFA and HUD approving the use of both VantageScore 4.0 and FICO 10T for mortgage lending.
Earlier this spring, the FHFA also signaled that a limited number of mortgages underwritten using VantageScore 4.0 would become eligible for delivery to Fannie Mae and Freddie Mac, opening the door for broader adoption across the conventional mortgage market.
What It Means For Borrowers
Under the updated scoring models, borrowers with strong rent payment histories or improving credit trends over time may benefit compared to traditional scoring systems that rely more heavily on static credit snapshots.
Rocket said borrowers can still improve their credit standing regardless of the scoring model used by focusing on core habits such as:
- Making payments on time
- Keeping credit utilization low
- Limiting unnecessary new credit accounts
While operational questions remain around how quickly lenders and investors will fully transition to the newer models, Rocket’s rollout suggests the mortgage industry’s long-discussed modernization of credit scoring is beginning to accelerate.
