Written by: Internal Analysis & Opinion Writers
Bob Broeksmit, CEO of the Mortgage Bankers Association (MBA), has strongly advocated for Fannie Mae and Freddie Mac to implement VantageScore 4.0 credit scoring "as soon as possible," positioning it as a key step toward modernizing the mortgage credit process and expanding borrower access.
In a blog post titled *“To the Point with Bob,”* Broeksmit praised FHFA Director Bill Pulte for spearheading the effort to update scoring standards at the GSEs. He noted that the MBA and industry stakeholders have been actively collaborating with FHFA and GSE staff to ensure the transition proceeds efficiently.
Broeksmit emphasized that incorporating VantageScore into the underwriting ecosystem should be accompanied by the future adoption of FICO 10T, enabling more competition and precision in credit scoring models. He described the existing tri-merge requirement—where lenders must pull three copies of the same credit score—as outdated and burdensome for both applicants and operational workflows.
MBA representatives have engaged directly with regulators since Pulte’s directive on July 8, quickly raising operational and technical questions. Broeksmit commended the early work on developing business rules that would support safe and effective scoring model implementation and credited the collaborative approach for the speed of progress.
“The work should not stop there,” Broeksmit wrote. “If we’re introducing more competition in credit scores, it makes sense to do the same with credit reporting.” He argued that modernizing credit reporting platforms—away from rigid tri-merge models—would create efficiency and reduce costs industry-wide.
Lenders and industry professionals have welcomed the shift, citing expectations that VantageScore 4.0’s inclusionary features—like rent and utility data—may improve access for borrowers with limited credit options. They also point to the opportunity for more competitive fee structures and flexible underwriting decisions.
Still, Broeksmit cautioned that the transition must be well planned. Lenders need time to update loan origination systems, investor delivery platforms, and compliance workflows to accommodate alternate score models without introducing submission errors or mispricing.
Beyond scoring models, the broader implication lies in fostering competition. Broeksmit advocated for breaking down outdated government requirements—specifically the tri-merge rule—to allow most lenders to leverage scoring models that reflect real borrower circumstances and validation criteria.
If adopted properly, the dual-model approach could accelerate lender innovation. The MBA sees potential for enhanced risk segmentation and expanded borrower qualification, especially for consumers who are thin-file or previously overlooked by traditional credit models.
The FHFA and GSEs are expected to continue gathering stakeholder input and building out technical infrastructure over the coming months. The aim is to enable lenders to choose their scoring model based on risk appetite and system readiness—without disrupting existing underwriting standards.
For lenders, the push represents both an opportunity and a challenge. Those who can adapt quickly to new scoring options may lower barriers for certain borrower segments, but they must balance operational readiness, compliance risk, and investor expectations during the transition.
Broeksmit’s message was clear: the time for credit score modernization has arrived. By moving swiftly to incorporate VantageScore 4.0 and preparing for broader innovation in reporting standards, the industry can reduce friction and expand access while preserving credit quality.
