Two changes are making it easier for mortgage brokers to choose between VantageScore 4.0 and Classic FICO.
United Wholesale Mortgage has eliminated the 20-point adjustment it previously applied to VantageScore for new locks, effective Sept. 30. At the same time, Fannie Mae and Freddie Mac have moved to aligned pricing across VantageScore and Classic FICO, effective Oct. 1.
For brokers, the practical takeaway is simple: when a borrower’s VantageScore comes in higher than their FICO score, there are now fewer pricing mechanics that can diminish that difference.
That doesn’t mean VantageScore will produce the better result on every file. But for borrowers near a pricing or eligibility threshold, comparing the two scores may matter more.
UWM Removes Its Adjustment
UWM said the change applies to new locks beginning Sept. 30.
“We’ve eliminated the 20-point adjustment previously applied to VantageScore credit scores,” the company told brokers, saying the change could potentially lead to cheaper mortgage insurance and lower LLPAs when VantageScore produces the better result.
The adjustment had been part of UWM’s VantageScore offering since its launch.
When UWM introduced its dual-score option in April, brokers using the lender’s no-cost credit reports began receiving both Classic FICO and VantageScore results on eligible loans.
Now they can compare the scores without UWM first reducing the VantageScore by 20 points.
UWM has already shown that the difference can matter. The lender said roughly one in four borrowers were receiving a more advantageous result with VantageScore, potentially affecting pricing, LLPAs, mortgage insurance, or eligibility.
GSE Pricing Changes Too
The UWM change arrives alongside a separate shift at Fannie Mae and Freddie Mac.
Effective Oct. 1, the GSEs have aligned pricing across Classic FICO and VantageScore 4.0, removing the separate pricing treatment previously applied when VantageScore was used.
Fannie Mae said its updated LLPAs apply to whole loans purchased on or after Oct. 1 and loans delivered into mortgage-backed securities with issue dates on or after Oct. 1. Freddie Mac likewise said credit fees across the two scoring models have been aligned.
For an LO, that means the score comparison is becoming less about translating one model into the pricing framework of another and more about which available score produces the better execution for a particular borrower.
Score Choice Moves Closer To The File
The changes are part of a broader shift since FHFA opened VantageScore 4.0 to all approved Fannie Mae and Freddie Mac lenders.
Some of the practical barriers are already coming down. TransUnion this week extended its 99-cent standalone VantageScore pricing through 2028, telling NMP that more than 1,100 mortgage lenders have enabled the model somewhere within their operations.
That does not mean all 1,100 are originating mortgages with VantageScore. TransUnion said adoption can include production originations, eligibility assessments, score-choice strategies, secondary-market execution, and other uses.
For UWM brokers, however, the decision is already much closer to the loan level.
If a borrower has a materially higher VantageScore than Classic FICO, the broker can now evaluate that score without UWM’s 20-point adjustment. And the GSE pricing structure no longer treats VantageScore through a separate grid.
Classic FICO may still produce the better result on some files, and VantageScore may produce little or no difference on others.
But for borrowers sitting near an eligibility or pricing threshold, the question is becoming increasingly practical: which score gives this borrower the better available outcome?
