New Mortgage Credit Models Cut Costs for Homebuyers
Major lenders are adopting VantageScore 4.0, which could lower your loan-level price adjustments and closing costs.
Updated on Oct. 29, 2026 in Residential
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Major mortgage lenders including CrossCountry Mortgage and Rocket Mortgage have adopted the VantageScore 4.0 credit model. This transition aims to improve loan pricing accuracy and has already led to reduced costs for many borrowers at closing.
Why it matters
Updating credit scoring models can lower loan-level price adjustments, directly reducing the upfront costs for homebuyers. By incorporating more nuanced scoring data, lenders aim to offer better financing terms to qualified borrowers who might otherwise face higher interest rates.
CrossCountry Mortgage achieved a 62 basis point reduction in price adjustments within 60 days of implementing the new model. Meanwhile, Rocket Mortgage reported that borrowers saved an average of $1,600 at closing after testing the model across 1.4 million credit reports.
The players
CrossCountry Mortgage
A national mortgage lender that recently updated its pricing process to incorporate VantageScore 4.0.
Rocket Mortgage
A major home loan provider that tested the new scoring model across 1.4 million credit reports.
United Wholesale Mortgage
A large-scale lender that now evaluates both FICO and VantageScore 4.0 for all credit checks.
Federal Housing Finance Agency
The federal regulator that approved the use of VantageScore 4.0 for mortgage lenders.
The details
Lenders use VantageScore 4.0 to generate credit reports that provide a broader view of an applicant's financial behavior compared to older models. By analyzing these scores, lenders like CrossCountry Mortgage have been able to remove restrictive 80% loan-to-value caps on eligible loans. United Wholesale Mortgage now pulls both FICO and VantageScore 4.0 reports, utilizing the strongest score from either to determine final loan pricing.
Timeline
September 2026: Rocket Mortgage adopted VantageScore 4.0 as its preferred scoring model.
Early October 2026: United Wholesale Mortgage began using dual credit score pulls.
October 29, 2026: CrossCountry Mortgage reported savings results following its implementation.
The Home Front
The adoption of VantageScore 4.0 represents a significant shift in how lenders evaluate risk against the Federal Housing Finance Agency's single pricing matrix. This trend moves the industry toward more inclusive credit assessments, potentially easing the cost burden for borrowers across the country.
If you are currently shopping for a mortgage, ask your loan officer if they are utilizing VantageScore 4.0 to calculate your loan-level price adjustments. Comparing your options between lenders who use multiple scoring models could help you identify potential savings at your closing table.
The takeaway
The move to new scoring models suggests that competitive pricing is becoming more accessible for qualified borrowers. Keep your most recent credit reports on hand to discuss the best scoring model options with your lender when applying for a loan.
Further reading
Learn more about navigating the current housing market in our Residential section.
Source note: This article includes information reported by HousingWire.
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