KBRA releases research examining historical VantageScore 4.0 (VS4) data published today by government-sponsored entities (GSE) Fannie Mae and Freddie Mac. This data release is central to the Federal Housing Finance Agency (FHFA) and the GSEs’ ongoing initiative to revamp credit scoring methods for loans eligible for GSE purchase. This initiative ultimately aims to transition away from “classic” FICO scores—by far the most prevalent scores used in mortgage lending over the past 20 years—to newer credit scoring models and augmented calculation methods. In the report, KBRA is taking a first look at the data that was released and providing some context and background on the credit scoring landscape for mortgage borrowers in the U.S.

The report includes:

• A summary of the VS4 historical score data that was released, covering approximately 45.3 million loans, as well as a comparison of the various score calculation methods provided.
• A comparison of VS4 scores to "classic" FICO scores within the GSE historical loan performance data set.
• Background on the FHFA and GSE credit score initiative, FICO scoring models (including 10T), and VantageScore.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1005083

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