WASHINGTON — Competition between the nation’s two leading mortgage credit-scoring models is accelerating as more lenders begin incorporating next-generation scores into their underwriting workflows, according to new reporting.
FICO said more than 70 mortgage lenders have enrolled in its free-access program for FICO Score 10T, representing approximately $586 billion in annual mortgage originations and nearly $1.9 trillion in servicing portfolios. Meanwhile, TransUnion reported that VantageScore 4.0 was included in approximately 30% of its mortgage credit pulls during the second quarter, up from less than 5% at the start of the year, National Mortgage Professional reported.
The figures do not necessarily indicate lenders are using the newer scores to approve or price mortgages. Instead, they reflect growing participation in programs that allow lenders to evaluate next-generation models alongside traditional credit scores during the underwriting process, the report added.
National Mortgage Professional reported that FICO’s participating lenders include Fairway Home Mortgage, InterLinc Mortgage Services, Lower Mortgage, NFM Lending, Novus Home Mortgage, Plaza Home Mortgage and Village Capital & Investment.
Why One Company Adopted Model
Novus Home Mortgage President and CEO Eric Egenhoefer said the company adopted FICO Score 10T because it believes the model provides a more accurate assessment of credit risk while supporting broader access to homeownership.
FICO Score 10T incorporates trended credit bureau data and reported rental payment information to evaluate how consumers manage debt over time. Under FICO’s evaluation program, lenders receive the new score alongside the traditional Classic FICO score at no additional cost. FICO said the model has the potential to increase mortgage approvals by as much as 5% at the same risk level or reduce delinquencies by up to 17%, although the company noted actual results will vary by lender.
TransUnion, one of the three credit bureaus that jointly owns VantageScore, is also offering lenders free access to VantageScore 4.0 through 2026 when they purchase FICO scores, allowing side-by-side comparisons.
The Financial Implications
The competition also carries financial implications. According to National Mortgage Professional, TransUnion reported mortgage revenue increased 37% year over year during the second quarter despite a 7% decline in mortgage inquiries. Excluding higher royalty payments to FICO, mortgage revenue increased 15%. The company said those higher royalty expenses reduced its adjusted earnings margin by about 90 basis points during the quarter.
The push toward newer scoring models follows recent actions by the government-sponsored enterprises and industry participants. Earlier this month, Fannie Mae and Freddie Mac released historical FICO Score 10T data covering loans acquired between 2013 and 2025 to help lenders evaluate the model’s predictive performance.
What Research Suggests
VantageScore has also released research claiming its 4.0 model could identify more than five million additional creditworthy consumers, potentially supporting as much as $1 trillion in new mortgage originations. Separately, consulting firm Milliman reported in May that FICO Score 10T outperformed VantageScore 4.0 in predicting mortgage default risk across the loan categories it analyzed.
National Mortgage Professional said the industry’s next milestone will be determining whether lenders move beyond evaluating the competing models and begin using them to make underwriting, pricing and loan delivery decisions that could affect borrowers’ eligibility and loan terms.
