• Mortgage Credit Score Competition Yields More Than $600 Million in Savings During First Full Year of Adoption
• Switching to VantageScore 4.0 Saves More Than $100 Per Completed Mortgage

Federal Housing Finance Agency (FHFA) Director Bill Pulte’s July 2025 decision to authorize VantageScore 4.0 for competitive use in GSE-conforming mortgages saves the U.S. mortgage industry more than $600 million in the first year under a “full adoption” scenario, according to a newly published independent analysis from credit risk research company Deep Future Analytics. Consumers whose mortgages are originated using VantageScore 4.0 stand to save in excess of $100 per completed loan. Across all of the comprehensive scenarios analyzed in the study, the inclusion of VantageScore in the conforming mortgage market generated meaningful cost savings for both lenders and borrowers.

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FHFA’s Mortgage Credit Score Decision Delivers Over $600 Million in Annual Mortgage Cost Savings, New Analysis Finds

“Mortgage credit score competition lowers cost, reduces mortgage risks and improves predictive performance," said Tony Hutchinson, EVP and Head of Public Affairs at VantageScore. "This rigorous analysis from Deep Future Analytics confirms that the implementation of the 2018 Credit Score Competition Act generates significant mortgage credit score savings and improves consumer affordability while simultaneously reducing mortgage industry risk. We applaud Director Pulte’s decision to introduce mortgage credit score competition and deliver $600 million in cost savings to mortgage lenders and borrowers through the adoption of VantageScore."

Titled “Economic Benefits of Score Market Competition for Conforming Mortgages,” the analysis models how competition between mortgage credit scoring providers beneficially affects mortgage credit score pricing, lender behavior and borrower costs. Deep Future Analytics evaluated multiple scenarios and found that introducing VantageScore 4.0 as a competitive, higher-performing mortgage credit score alternative delivers up to $2.5 billion in cumulative cost savings over a five-year period, even under conservative modeling assumptions.

Key findings include:

MORE THAN $600 MILLION IN MORTGAGE MARKET SAVINGS: Based on Mortgage Bankers Association (MBA) volume forecasts for both conforming and non-conforming mortgage loans, mortgage credit score competition is projected to generate an estimated $648 million in savings in the first full year. Even in more conservative adoption scenarios, cumulative benefits turn positive within the first quarter of competition.

MORTGAGE CREDIT SCORE CONVERSION SAVES MORE THAN $100 PER COMPLETED MORTGAGE: Lenders and borrowers save on average $111 in direct and indirect fees per successful mortgage application under the “full adoption” scenario examined in the analysis. The study identified additional savings potential for lenders driven by VantageScore’s more predictive credit score model, which scores 33 million more Americans than legacy credit scores.

The study concludes that the July 2025 FHFA authorization of VantageScore 4.0 as a competitive participant in the conforming mortgage market generates substantial economic savings for lenders and consumers under all plausible pricing and adoption scenarios.

Download a full copy of the report from VantageScore’s website or by visiting the Deep Future Analytics website.

To learn more about VantageScore’s growth in the GSE-conforming mortgage market, visit the VantageScore Mortgage Resource Center.

About VantageScore®

VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry’s most innovative, predictive and inclusive credit score models. In 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending.

VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.

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