TransUnion is locking in its 99-cent price for VantageScore 4.0 through the end of 2028, giving mortgage lenders nearly three more years of price certainty just as competition between credit-scoring models begins moving deeper into actual loan production.
But one of the biggest numbers in the company's announcement needs some context.
TransUnion says VantageScore 4.0 adoption expanded to more than 1,100 mortgage lenders between January and September. Satyan Merchant, senior vice president and mortgage business leader at TransUnion, clarified to National Mortgage Professional that “adoption” does not necessarily mean all of those lenders are originating mortgages using the model.
“When we refer to adoption, we mean that a lender has enabled VantageScore 4.0 within its mortgage workflow and has the capability to use it in its operations,” Merchant told NMP.
How lenders use that capability varies.
“Some may use the score in production originations, while others may apply it to eligibility assessments, score choice strategies, secondary market execution, portfolio analysis, or other mortgage decisioning processes,” Merchant said.
“The common element is that these lenders have moved beyond general evaluation and implemented the ability to use VantageScore 4.0 within their mortgage operations.”
That comes at a pivotal moment for mortgage credit scoring.
The Federal Housing Finance Agency expanded VantageScore 4.0 availability Sept. 9, allowing all approved Fannie Mae and Freddie Mac lenders to use either VantageScore 4.0 or Classic FICO on eligible loans sold to the government-sponsored enterprises without obtaining prior approval.
Now, lenders have more freedom to choose — and price is becoming part of that decision.
What 99 Cents Actually Means
Under TransUnion's extended program, a standalone VantageScore 4.0 mortgage origination score will remain 99 cents through Dec. 31, 2028. TransUnion was the first of the three nationwide credit bureaus to announce 99-cent VantageScore pricing earlier this year.
The company will also continue providing VantageScore 4.0 at no additional charge to mortgage customers that purchase a FICO score.
For an originator, however, that does not mean a mortgage credit report suddenly costs 99 cents.
Merchant told NMP that when a VantageScore 4.0 score is obtained from each of the three credit bureaus, the aggregate score charge would be approximately $3 per consumer application.
“The 99-cent price can meaningfully reduce the score-related portion of a lender's credit costs,” Merchant said.
That distinction matters because the scoring charge is only one component of the cost associated with pulling mortgage credit. FHFA has kept existing credit-reporting requirements in place during the VantageScore rollout, meaning a cheaper score does not eliminate the other costs associated with obtaining a mortgage credit report.
TransUnion estimates its pricing could generate more than $900 million in potential savings for lenders and consumers, citing an analysis by Deep Future Analytics. That figure represents modeled potential savings rather than savings already realized across the mortgage market.
For lenders deciding whether to implement another scoring model, the longer price commitment also removes one variable from the equation.
“Broad availability of VantageScore 4.0 gives lenders another accepted credit scoring option, and predictable pricing will help them adopt that option with greater confidence,” Merchant said in announcing the extension.
“By extending our pricing through the end of 2028, TransUnion is offering three years of price stability while supporting greater competition and score choice in the mortgage market.”
Lenders Aren't Looking At Price Alone
Price isn't the only factor lenders are considering as they decide between scoring models, Merchant told NMP.
“No single factor is driving lenders' decisions,” he said. “Price is important, but lenders are also evaluating predictive performance, borrower eligibility and outcomes, loan economics, operational readiness, and how each model performs against their own historical portfolio data.”
That calculus is becoming increasingly relevant as major mortgage lenders report that competing scoring models can produce different results for some borrowers.
Rocket Mortgage announced this week that it will make VantageScore 4.0 its preferred model for eligible retail mortgages after roughly four months of testing.
Rocket said it obtained 1.4 million credit reports using both VantageScore and FICO this year and found VantageScore helped some borrowers meet credit requirements or obtain better pricing. Among borrowers who saved money through VantageScore, Rocket reported average savings of $1,600 at closing.
Rocket Pro is taking a different approach for mortgage brokers: both scoring models will remain available, allowing brokers to compare results for eligible borrowers.
United Wholesale Mortgage has similarly reported that approximately one in four borrowers using VantageScore 4.0 received a more advantageous credit result.
UWM said those differences could translate into improved pricing, better loan-level price adjustments, lower mortgage insurance costs, or increased eligibility. The wholesale lender expected the share of borrowers receiving a more favorable VantageScore result to reach 40% by the end of September as adoption increased.
Neither lender's results mean VantageScore will produce the more favorable outcome for every borrower. They do show that competing models can produce different results for the same mortgage applicant, making score choice increasingly relevant at the point of origination.
Credit-Score Choice Becomes An Origination Decision
VantageScore 4.0 uses trended credit data and can incorporate rental and utility tradelines when they appear in a consumer's credit file.
Until recently, however, mortgage lenders had limited ability to turn those differences into actual score choice on conventional loans.
That changed Sept. 9 when FHFA expanded VantageScore availability to every approved Fannie Mae and Freddie Mac lender. Classic FICO remains eligible, while FICO Score 10T has been approved but is not yet eligible for GSE loan delivery.
The Federal Housing Administration is also preparing to accept VantageScore 4.0 and FICO 10T beginning Jan. 1, 2027.
More than 1,100 mortgage lenders now have VantageScore 4.0 enabled somewhere in their mortgage operations, according to TransUnion. Rocket has decided to make it its preferred score on eligible retail production. UWM is reporting different borrower outcomes from competing models. Brokers using Rocket Pro can compare both.
