VantageScore 4.0 is a consumer credit score model that summarizes a person’s creditworthiness into a single number, using up-to-date credit file information and modern statistical methods. Think of it as a quick “risk score” like a one-number weather forecast for a borrower: lenders and investors use it to decide who gets loans, at what price, and to estimate default risk in consumer lending portfolios, so shifts in average scores can affect credit availability and financial returns.
fico score 10tfinancial
A FICO Score 10T is a specific version of the widely used consumer credit score that summarizes a borrower’s creditworthiness on a scale lenders use to decide loans and rates. It looks at longer payment trends and recent account behavior so scores can move more noticeably than older models; think of it like a fitness tracker that tracks both long-term habits and recent workouts. Investors watch which score version lenders use because shifts in underwriting sensitivity affect loan approval rates, interest spreads, and the credit quality of financial portfolios.
fhfaregulatory
Federal Housing Finance Agency (FHFA) is the U.S. government regulator that oversees key parts of the housing finance system, including the agencies and banks that back and buy mortgages. Think of it as a referee and rule-maker: it sets limits, enforces safety rules, and can take corrective action to stabilize the market. Investors watch FHFA because its decisions influence mortgage availability, loan limits, risk rules and the value of mortgage-related assets.
gseregulatory
A GSE (government-sponsored enterprise) is a privately owned company created by the government to support a public policy goal, such as making home loans or agricultural credit more available. Think of a GSE as a bridge that helps private lenders reach more customers by backing loans or buying them, which can stabilize markets and lower borrowing costs; investors watch GSEs because their ties to government policy and large balance sheets can affect risk, liquidity and returns.
hud/fharegulatory
HUD/FHA refers to the U.S. Department of Housing and Urban Development and its Federal Housing Administration unit, which insure and regulate many home mortgages. Think of the FHA as a government-backed safety net that makes it easier for buyers to get loans by absorbing part of the risk for lenders; HUD sets related rules and housing policy. Investors watch HUD/FHA activity because it affects how many mortgages get made, the credit risk in mortgage-backed securities, and overall housing market stability.
securitizationfinancial
Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.
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Freddie Mac completes securitization containing Newrez originated VantageScore® 4.0 loans.
FORT WASHINGTON, Pa.--(BUSINESS WIRE)--
Newrez, a top five mortgage lender and servicer, recognized the role its deep partnership with Freddie Mac played in enabling the U.S. Federal Housing (FHFA), Freddie Mac, and Fannie Mae to move forward with the industry’s transition to modernized credit scoring. Through a loan delivery limited engagement with Freddie Mac, Newrez helped validate that VantageScore® 4.0 could be originated, underwritten, priced, and delivered to a GSE.
Newrez’s participation in a Freddie Mac loan delivery limited engagement helped validate the operational readiness needed for the industry-wide announcement, demonstrating that VantageScore 4.0 can be leveraged for loans originated, underwritten, and delivered to a GSE.
“Newrez applauds the Trump Administration and FHFA Director Bill Pulte for their continued leadership in advancing credit score modernization and expanding access to homeownership for hardworking Americans,” said Baron Silverstein, President of Newrez. “Our team’s investment in operational readiness — across origination, technology, secondary markets, and delivery — demonstrates what is achievable when a leading lender and a GSE partner with shared purpose. We are grateful to Freddie Mac for their trust and partnership, and we look forward to supporting the industry as it moves toward broader adoption of modernized credit scoring.”
FHFA, Fannie Mae, Freddie Mac, and HUD/FHA announced their coordinated policy updates permitting the current use of VantageScore 4.0 and the future use of FICO® Score 10T for loans delivered to the GSEs. It is the most significant update to GSE credit scoring requirements in nearly three decades, supporting a holistic view of the borrower as it considers additional inputs such as on-time rent payment history and trended credit data not incorporated in previous models.
VantageScore 4.0 considers additional data such as on-time rent payment history, which has the potential to create new opportunities for creditworthy borrowers who have historically been underserved.
About Newrez
Newrez LLC (“Newrez”), a Rithm Capital Corp. (NYSE:RITM) company, is a top five mortgage lender and servicer, according to Inside Mortgage Finance, dedicated to providing a customer-first experience throughout the homeownership journey. Newrez offers industry-leading servicing capabilities for owned MSRs and for third-party clients, as well as a robust origination model with presence in the retail, wholesale, correspondent, and consumer direct verticals. Newrez's mission is “to do everything possible to make home happen”through a wide array of products and services. Newrez was established in 2008 and is headquartered in Fort Washington, PA. To learn more about Newrez, visit www.newrez.com.
