Rocket Mortgage Becomes First Home Lender to Use VantageScore as its Preferred Scoring Model on All Eligible Loans
Rocket Pro will continue providing brokers with both scoring models while eligible direct-to-consumer loans switch to VantageScore 4.0.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Rocket Mortgage, part of Rocket Companies (RKT), will default to VantageScore 4.0 for eligible loans during fourth-quarter 2026.
The change covers eligible direct-to-consumer mortgages delivered to Fannie Mae or Freddie Mac, VA loans and other eligible mortgages. After roughly four months of testing, Rocket Mortgage found that more clients qualified and credit scoring costs fell. Clients who saved money with VantageScore 4.0 saved an average of $1,600 at closing. So far this year, the company obtained 1.4 million credit reports using both VantageScore and FICO.
Investment-property and second-home mortgages, home equity, FHA and jumbo loans, and some other products will continue using FICO for now. Rocket Pro will provide mortgage brokers with both scores.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.VantageScore 4.0 will become the default for eligible direct-to-consumer loans during fourth-quarter 2026.
- Minor pointMore clients qualified and moved forward in the mortgage process during roughly four months of testing.
- Minor pointCredit scoring costs fell during the testing.
- Minor point$1,600 at closing was the average savings for clients who saved money with VantageScore 4.0.
Negative
- Minor pointInvestment-property and second-home mortgages, home equity, FHA and jumbo loans, and some other products will continue using FICO for now.
News Explained
VantageScore 4.0 tracks changes in credit behavior, including balances and payments, and can use rent and utility records when they appear in a credit file to score some people with limited histories who lack a score under conventional models.
Key Figures
- Testing period
- Roughly four months
- VantageScore testing before the announced shift
- Credit reports evaluated
- 1.4 million credit reports
- Obtained year to date using both VantageScore and FICO
- Average closing savings
- $1,600
- Average savings for clients who saved money with VantageScore 4.0
- Transition timing
- Fourth quarter of 2026
- Default use for eligible mortgages specified in the announcement
AI-generated analysis. How Rhea-AI works. Not financial advice.
Announcement follows testing showing more clients meet credit requirements and benefit from lower costs using VantageScore 4.0
During the fourth quarter of 2026, the company will default to VantageScore 4.0 for mortgages that will be delivered to Fannie Mae, Freddie Mac, VA home loans and any other eligible mortgages.
"The mortgage industry has relied on one credit scoring model for decades. Competition is healthy, especially when it can lower costs and expand responsible access to homeownership. We did the work, compared the models and chose the one that helped more qualified clients," said Jay Bray, CEO of Rocket Mortgage. "With our mission to 'help everyone home' this decision only made sense. We thank Director Pulte for his leadership in encouraging multiple credit scoring models that ultimately benefit the American homebuyer."
With innovation and competition, Rocket Mortgage is seeing there are improved ways to help people buy and refinance homes. So far this year, the company obtained 1.4 million credit reports using both VantageScore and FICO. Rocket Mortgage did an extensive study that helped the company determine VantageScore 4.0 opens access to some clients who wouldn't be served otherwise, and many are able to secure a mortgage on better pricing terms. For those who saved money with VantageScore 4.0, the savings was an average of
VantageScore 4.0 evaluates how a person's credit behavior changes over time, including patterns in balances and payments. The model incorporates rent and utility payment information when it is included in a consumer's credit file, enabling it to generate scores for some consumers whose limited credit histories leave them without a score under conventional models, for aspiring homeowners, that additional financial history gives lenders more information to assess their creditworthiness.
The transition will apply to all Rocket Mortgage direct-to-consumer loan products that currently allow VantageScore use. For now, mortgages for investment properties and second homes, home equity loans, FHA loans, jumbo loans and some other products will still use FICO scores. Rocket Pro, the division of Rocket Mortgage that provides home loans through mortgage broker partners, will provide both VantageScore and FICO to mortgage brokers, as part of its commitment to broker optionality. In addition to credit, mortgage approval also depends on income, debt, assets, property and other loan requirements.
Connect with a mortgage banker at RocketMortgage.com to learn more.
About Rocket Mortgage
Detroit-based Rocket Mortgage (NMLS #3030) is the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT).
The lender enables the American Dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience. In late 2015, it introduced the first fully digital, completely online mortgage experience. Since its founding in 1985, Rocket Mortgage has closed more than
Rocket Companies, Rocket Mortgage's parent company, has placed in the top third of Fortune's list of the "100 Best Companies to Work For" the list for 23 consecutive years.
For more information and company news visit RocketCompanies.com/PressRoom.
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SOURCE Rocket Mortgage
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When will Rocket Mortgage switch eligible loans to VantageScore 4.0?
Rocket Mortgage will default to VantageScore 4.0 during fourth-quarter 2026 for eligible direct-to-consumer loans, including mortgages delivered to Fannie Mae or Freddie Mac and VA home loans.
How does Rocket Mortgage's VantageScore 4.0 assess borrowers with limited credit histories?
VantageScore 4.0 can generate scores for some consumers whose limited credit histories leave them without a score under conventional models. It evaluates changes in credit behavior over time, including balance and payment patterns, and uses rent and utility payment information when that information is in a consumer's credit file.