Federal Housing Director says reviewing potential FICO deal on new credit score

The (FHFA), led by Director Bill Pulte, is currently reviewing a potential deal with Fair Isaac Corp (FICO) to implement the new FICO 10T credit scoring model for mortgages. The FICO 10T model uses trended credit data, capturing consumer debt history over the previous 24 months, and aims to enhance both consumer benefits and stability in the mortgage market.​

Background of the Review

• Until now, Fannie Mae and Freddie Mac relied almost exclusively on the classic FICO score for mortgage credit assessments.​

• Earlier in 2025, the FHFA announced lenders could use either the classic FICO or the competing VantageScore 4.0 metrics, with VantageScore considering a broader range of financial factors, such as rent, utility, and telecom payments.​

• The review of a new deal with FICO is part of broader reforms to modernize and increase competition in the credit scoring system for federally backed mortgages.​

Implications for Consumers and the Mortgage Market

• The adoption of FICO 10T is expected to provide lenders with a more comprehensive assessment of consumer creditworthiness and potentially benefit millions of Americans who were “credit invisible” under older metrics.​

• The deal appears to be in its final stages, with FHFA stating that implementation guidance, stakeholder engagement, and training resources are in development to facilitate a smooth transition.​

• The move could mean lower costs and greater transparency, as FICO has also launched direct licensing for mortgage lenders, bypassing traditional credit bureaus.​

• FHFA plans to disclose credit scores using both Classic FICO and VantageScore 4.0 for loan securities, as part of November 2025 system enhancements.​

Next Steps

• The FHFA and government-sponsored entities (Fannie Mae and Freddie Mac) must adjust their systems and pricing structures before official adoption.​

• Industry stakeholders continue to raise questions about the implementation timeline and the operational complexity of managing multiple scoring models, with FHFA promising further guidance and data to support stakeholders.​

In summary, the FHFA’s active review of a deal to adopt FICO 10T signals a major shift in U.S. mortgage credit scoring policy, aiming for expanded consumer access while maintaining market safety.