KBRA Releases Research – GSEs Release Historical VantageScore 4.0 Data
11 Jul 2024 | New York
KBRA releases research examining historical VantageScore 4.0 (VS4) data published today by government-sponsored entities (GSE) Fannie Mae and Freddie Mac. This data release is central to the Federal Housing Finance Agency (FHFA) and the GSEs’ ongoing initiative to revamp credit scoring methods for loans eligible for GSE purchase. This initiative ultimately aims to transition away from “classic” FICO scores—by far the most prevalent scores used in mortgage lending over the past 20 years—to newer credit scoring models and augmented calculation methods. In the report, KBRA is taking a first look at the data that was released and providing some context and background on the credit scoring landscape for mortgage borrowers in the U.S.
The report includes:
- A summary of the VS4 historical score data that was released, covering approximately 45.3 million loans, as well as a comparison of the various score calculation methods provided.
- A comparison of VS4 scores to "classic" FICO scores within the GSE historical loan performance data set.
- Background on the FHFA and GSE credit score initiative, FICO scoring models (including 10T), and VantageScore.
Click here to view the report.