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Bill Pulte directs Fannie Mae and Freddie Mac to accept Vantage credit scores for mortgage loans

Bill Pulte, the Director of the U.S. Federal Housing Finance Agency, announced that he has directed the heads of Fannie Mae and Freddie Mac to accept mortgage loans for purchase from banks when those loans were issued in reliance on a Vantage credit score. Vantage is a credit score created in cooperation by Equifax, Experian, and TransUnion as an alternative to the traditional FICO score. This move follows a push by the administration to introduce competition to the FICO score. The administration has criticized Fair Isaac Corporation for contributing to high homeownership costs by charging excessive rates for FICO scores. By encouraging the use of Vantage scores, which are advertised at $0.99 per pull, the administration aims to lower the cost of homeownership. Investors reacted to the news by causing Fair Isaac Corporation stock to tumble 17.8% by 10:55 a.m. ET on Friday.

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