Rocket Mortgage will make VantageScore 4.0 its default credit model

Rocket Mortgage will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for all eligible loans, the company announced Monday. The lender plans to default to VantageScore 4.0 during the fourth quarter for mortgages delivered to Fannie Mae and Freddie Mac, VA home loans and other eligible mortgages. Rocket Mortgage said it tested VantageScore and FICO for about four months, obtaining 1.4 million credit reports using both models this year. The company said the testing found that VantageScore helped some additional borrowers qualify for mortgages and, in some cases, receive better pricing. Borrowers who saved money using VantageScore saved an average of $1,600 at closing, according to Rocket Mortgage. “The mortgage industry has relied on one credit scoring model for decades,” Jay Bray, CEO of Rocket Mortgage, said in a statement. “We did the work, compared the models and chose the one that helped more qualified clients.” VantageScore 4.0 is designed to evaluate changes in a consumer’s credit behavior over time, including payment and balance patterns. It can also incorporate rent and utility payment information when that data is included in a ...