Since he joined FHFA, Pulte has continued changes in current credit ratings by companies sponsored by the government. His comments were directed to Fair Isaac Corp. (FICO), which obliges one of the most used credit risk assessment tools in the mortgage industry.
In an article on Tuesday morning on the social media platform X, Pulte said that on Tuesday on Tuesday, “to increase competition in the credit rating ecosystem and coherent with President Trump’s landslide to reduce costs, Fannie and Freddie will allow lenders to use the Vantage 4.0 score without any requirement to build new infrastructures (stay in Merge).”
Pulte’s comments follow publications on the social networks he made in May, wondering why certain credit reports have doubled the costs. He also expressed his frustration in the face of the price structure.
“After the hard work of many major senators, including Senator Tim Scott, I am extremely disappointed to hear about cost increases by the FICO on American consumers.”
Fico’s stock decreased sharply after its comments in May, lowering around 25%.
It is not entirely clear if the agencies will eventually go to a Bi-Merge credit report score in the subscription models. Under the Biden administration, there was an initiative to move to two credit declaration agencies to increase competition and reduce costs on Fannie Mae and Freddie Mac bought by Mac.
The FHFA forced the use of VoloutagesCore 4.0, alongside the Fico 10 T score, for mortgages purchased by GSE. Mortgage lenders had to start providing scorescore 4.0 for loans newly from the third quarter of 2024, with a complete implementation scheduled for the fourth quarter of 2025, but it was postponed indefinitely.
VOUTAGESCORE believes that using their credit model will result in around 33 million additional consumers at the national level having access to a credit score that could help them obtain a mortgage.
In another article on social networks, Pulte said that the change would expand “access to credit to millions of forgotten Americans – people who live in rural areas, tenants who pay their rents in time each month – and reduce closing costs”.
