1 in 4 Borrowers Seeing a Better Outcome With VantageScore® 4.0 – Soon to Be 2 in 5

UWM’s early adoption of VantageScore 4.0 is already shifting credit outcomes and expanding potential access to homeownership for its borrowers.

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UWM Sees Growing Number of Borrowers Move From “No Loan” to Homeowner With Modern Credit Scoring Model

PONTIAC, Mich.--(BUSINESS WIRE)-- The first mortgage lender to offer VantageScore^® 4.0 when it became available earlier this year is already seeing the impact of this modern scoring model. For borrowers whose mortgage broker partners use UWM, a different approach to credit scoring is already producing a more favorable outcome.

By using VantageScore 4.0 instead of the traditional FICO scoring model, approximately 25% of borrowers are currently seeing a more advantageous credit result — a difference that can potentially improve pricing, provide better LLPAs, improved mortgage insurance, increase loan eligibility and, in some cases, turn what could have been a “no loan” into homeownership.

And the impact is accelerating. By the end of the month, UWM anticipates that number could reach 2 in 5 borrowers.

The results highlight the potential of VantageScore 4.0 to help broaden access to homeownership by providing a more complete, modern assessment of a consumer’s creditworthiness, without changing lending standards.

“The addition of VS4 has been one of the best things that has come from FHFA in many, many years,” said Mat Ishbia, President and CEO. “The mortgage industry talks a lot about affordability and expanding homeownership, but this is what expanding homeownership actually looks like, and we appreciate FHFA and Director Pulte for taking a serious look at the opportunities VS4 provides and taking action, which has been a home run for consumers and now we are seeing other agencies follow his lead.”

VantageScore 4.0 uses additional information and trending credit data to assess how consumers manage credit over time, creating a more comprehensive view of a borrower’s credit profile. That can be particularly important for consumers whose creditworthiness may not be fully captured by traditional scoring approaches.

For a borrower, that difference could be significant. A change in credit score can affect mortgage eligibility, loan pricing, mortgage insurance costs and other loan terms.

But behind those numbers is an even more meaningful result: more qualified consumers gaining an opportunity to become homeowners.

The adoption of VantageScore 4.0 marks one of the most significant changes to mortgage credit scoring in decades, bringing greater competition and a modern approach to evaluating consumer credit.

About UWM Holdings Corporation and United Wholesale Mortgage

Headquartered in Pontiac, Michigan, UWM Holdings Corporation (UWMC) is the publicly traded indirect parent of United Wholesale Mortgage, LLC (“UWM”). UWM is the nation’s largest home mortgage lender, despite exclusively originating mortgage loans through the wholesale channel. UWM has been the largest wholesale mortgage lender for 11 consecutive years and is also the largest purchase lender in the nation. With a culture of continuous innovation of technology and enhanced client experience, UWM leads the market by building upon its proprietary and exclusively licensed technology platforms, superior service and focused partnership with the independent mortgage broker community. UWM originates primarily conforming and government loans across all 50 states and the District of Columbia. For more information, visit uwm.com or call 800-981-8898. NMLS #3038.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260915062335/en/

MEDIA CONTACT
Nicole Roberts, Team Leader, Communications and Media
248-833-4287
Nroberts1@uwm.com
585 South Blvd E. Pontiac, Michigan 48341
uwm.com

Source: United Wholesale Mortgage, LLC

Key Terms

llpas financial

Loan-level price adjustments (LLPAs) are risk-based fees assessed on individual residential mortgage loans by government-sponsored enterprises that buy or guarantee mortgages. They work like a surcharge based on loan features—credit score, down payment size, loan type, or property type—and raise the cost of funding specific loans. LLPAs matter to investors because they affect mortgage pricing, lenders’ margins and the yields or credit risk of mortgage-backed securities, similar to how higher insurance premiums reflect greater perceived risk.

fhfa regulatory

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.