United Wholesale Mortgage says approximately one-quarter of borrowers across its current pipeline are receiving a more favorable credit result when evaluated with VantageScore 4.0 instead of the Classic FICO model.
According to UWM, a more advantageous result generally means a better relative score that leads to a lower mortgage rate or reduced loan-level price adjustments, potentially lowering the borrower’s costs.
The wholesale lender expects the share to reach two in five borrowers by the end of September as more mortgage brokers and consumers use the alternative model.
UWM did not break out how many borrowers received lower rates, reduced LLPAs, or new loan eligibility.
“The addition of VS4 has been one of the best things that has come from FHFA in many, many years,” UWM President and CEO Mat Ishbia said.
“The mortgage industry talks a lot about affordability and expanding homeownership, but this is what expanding homeownership actually looks like,” Ishbia added.
Credit-Score Choice Expands
UWM was among the first large mortgage lenders to offer VantageScore 4.0 after the Federal Housing Finance Agency moved forward with the model’s use for mortgages sold to Fannie Mae and Freddie Mac.
The lender introduced a dual-score option in April, allowing its mortgage broker partners to compare Classic FICO and VantageScore 4.0 results on eligible conventional loans.
UWM later expanded access to credit reports containing both scores, giving brokers another way to identify borrowers who might receive different pricing or eligibility results under the newer model.
The broader market for VantageScore loans has opened further since then. On Sept. 9, Fannie Mae and Freddie Mac made VantageScore 4.0 available to all approved lenders for eligible mortgages, removing the previous requirement that lenders receive written approval before using it.
Lenders may continue using Classic FICO or elect to use VantageScore 4.0, according to the FHFA. Adoption remains optional.
Under Fannie Mae’s requirements, lenders choosing VantageScore 4.0 must obtain the score from each of the three credit bureaus through a three-in-file merged credit report. The same scoring model must be used for every borrower on a loan.
VantageScore 4.0 is available for eligible loans evaluated through Fannie Mae’s Desktop Underwriter but is not currently permitted for manually underwritten Fannie Mae loans.
The Federal Housing Administration plans to begin accepting VantageScore 4.0 and FICO Score 10T on Jan. 1, 2027.
What It Means
UWM’s results give originators a practical reason to compare available scoring models when an eligible borrower is near a pricing or qualification threshold.
A different qualifying score can move a borrower across an LLPA or mortgage insurance threshold, changing the rate, upfront cost, monthly payment, or purchasing power. In some cases, it could affect whether the borrower qualifies.
Credit-model selection is still only one part of underwriting. Income, assets, debt-to-income ratio, loan-to-value ratio, property eligibility, and other requirements continue to determine whether a mortgage can close.
But with VantageScore 4.0 now available to all approved GSE lenders, comparing scoring models could become a more routine part of structuring eligible conventional loans rather than a tool reserved for borrowers with limited credit histories.
