The moment for change
Homeownership is more than a dream - it’s a cornerstone of financial stability and a key driver of the US economy. Yet millions of responsible renters and hardworking families remain locked out when traditional scoring models overlook their real-world payment behavior. The Federal Housing Finance Agency’s (FHFA) recent policy shift to accept VantageScore® 4.0 created a historic opportunity to introduce competition in mortgage credit scoring and reduce costs for borrowers, lenders and investors.
That’s why we announced our innovative new approach to mortgage credit offerings. This blog explores how these new offerings empower consumers, lenders and the housing ecosystem to build a stronger, safer and more affordable mortgage market.
Why it matters for consumers
- Getting credit for what they deserve. At the core of every credit score and credit decision is consumer credit data. TruVision™ Trended Data delivers the industry’s most complete view of credit behavior with 30 months of payment, balance and utilization trends. This means a consumer is evaluated not just on a single moment, but over the last 30 months of managing their credit. Furthermore, we include TruVision Alternative Data on the mortgage credit report. This includes non-traditional signals like rent and utility payments and short-term lending behavior, creating a richer, fairer picture of creditworthiness. The impact is real: when rent tradelines are included, 12% of consumers move up to a higher credit score tier, opening doors to better mortgage opportunities.
- Opening the pathway to homeownership. The journey to owning a home shouldn’t be limited based on a partial picture of a consumer’s credit. When lenders choose to use VantageScore 4.0, millions of responsible renters — who’ve proven they can manage real-world obligations — are finally recognized for their creditworthiness.
Research shows the impact is enormous:
- 33 million previously unscorable consumers have an easier path to a mortgage
- 4.9 million incremental mortgage eligible consumers
- Potential for 2.7 million new mortgages and $1 trillion in loan opportunities
- Paying less at closing. By offering VantageScore to customers for 99 cents consumers benefit. As lenders adopt VantageScore, this pricing efficiency supports more affordable loan origination and enhances consumer experience. That’s a win for everyone.
Why it matters for resellers and lenders
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Predictable pricing. For years, the mortgage industry faced unpredictable and significant rising credit score costs (see image below). We want to change that by giving lenders predictable, sustainable pricing in an environment where costs have become increasingly volatile. That’s why we’re introducing multi-year pricing options that lock in value over time, helping lenders plan with confidence.
Lower costs. TransUnion is committed to advancing FHFA’s vision for increased competition in credit scoring, supporting a more inclusive and dynamic mortgage marketplace. That’s why we made VantageScore 4.0 for mortgage available at 99 cents. And through 2026, lenders purchasing a FICO Score from TransUnion will also receive VantageScore 4.0 at no additional cost. Because real choice should come with savings, not surprises.
Smart tools for shifting landscapes. TruIQ™ Analytics Solutions empowers lenders to meet the demands of this fast-changing mortgage market with smart, interoperable tools that drive stronger, more inclusive decisions. This modular suite unites TransUnion’s trended data, alternative data and other proprietary data with analytics and intelligence solutions that lending teams can use to interactively benchmark performance, link data to pseudonymized TransUnion data in their private environment, build and test production-ready models, and more. Using TruIQ, lenders have been able to dramatically reduce their time to launch new strategies — some by 85%.
Why it matters for the mortgage ecosystem
Insure smarter, grow faster. Mortgage insurers can capitalize on TransUnion’s latest innovations to expand insured loan volumes and improve underwriting precision. By leveraging richer trended and alternative credit data and the benefits of lower lender costs, insurers gain a competitive edge in pricing accuracy, portfolio stability and market growth.
Expanding access without lowering standards. Expanding access doesn’t mean lowering standards for investors and US taxpayers. VantageScore 4.0, powered by trended and alternative data, gives lenders, government-sponsored enterprises (GSEs) and investors the most robust view of consumer risk, supporting a secure, liquid secondary market while enabling millions more Americans to achieve homeownership.
This isn’t just about scores. Credit scores have many uses and are often used for assigning loan applicants to lender-defined risk tiers (e.g., low risk, high risk). However, scores are only part of the equation. Credit data is the foundation for every credit score. It provides a detailed view of a consumer’s creditworthiness and is critical in determining loan eligibility. As the mortgage industry evolves, lenders increasingly rely on broader datasets and trended attributes to make smarter, more predictive decisions. TransUnion is committed to creating a competitive, affordable and inclusive credit system where data flows freely, innovation thrives and every stakeholder — from lenders to investors to consumers — benefits.
