Fannie Mae, Freddie Mac to allow credit scores, including rent, services
Financial activist Taylor Price joins ‘Varney & Co.’ to distinguish how changing the way you think can help Americans increase their wealth and achieve the American Dream.
Fannie Mae and Freddie Mac made a big change in how Americans could qualify for a loan.
The state-backed lender said Wednesday it will begin allowing loans assessed using VantageScore 4.0, a new credit scoring model that can include information such as rent payment history and utilities.
The change will begin on a limited basis, starting with a group of approved lenders, as part of a broader effort to improve credit scores led by the Federal Housing Finance Agency (FHFA).
HOUSING CRISIS HITS EVERY YEAR AS HOMEOWNERSHIP DECLINES ACROSS THE COUNTRY
“It’s because of President Trump’s victory with ambition and leadership that we finally broke the gridlock to do this – what the American people deserve about the special interest of Washington,” said FHFA Director William Pulte in a press conference on Wednesday.
“Fannie and Freddie, as I said, are ready to begin immediately working with accredited lenders to accept VantageScore loans.”
Single-family homes line the streets of Thousand Oaks, Calif., April 2, 2026. (Kevin Carter/Getty Images)
Pulte added that Freddie Mac has begun testing the model, taking on about $10 million in loans evaluated using VantageScore, which is expected to be confirmed.
“If you’ve paid your rent for 10 years, that should be factored into your credit score,” Pulte said. “So, I think it will save a lot of money. And this is a good time to buy homes.”
He also estimated that the change could affect “tens of millions” of Americans.
During the limited release period, accredited lenders can choose between VantageScore 4.0 and standard FICO scores.
AVERAGE MONTHLY TERM PAYMENT HITS NEW, TOPS $2K FOR FIRST TIME
Someone gives someone a house key. (Stock)
A second updated model, the FICO Score 10T, is also expected to be introduced as part of the modernization program.
The FICO 10T also includes both good and bad rental payment history when reported to the credit bureaus.
“By incorporating new models with predictive power, we can support sustainable access to homeownership and maintain safety, soundness and operational readiness at the institution,” said Jake Williamson, senior vice president and head of single-family housing at Fannie Mae, in a statement.
HOUSING MARKET GAINS MOMENTUM AS BUSY TIME BEGINS
A for sale sign displayed in front of a single family home. (Stock)
Efforts to modernize credit scores have been going on for years. In 2022, federal regulators approved both VantageScore 4.0 and FICO 10T after extensive testing, according to Freddie Mac.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Pulte also signed off on the change last year, noting in a post to X that “credit history will no longer include just credit cards and loans.”
Daniella Genovese of FOX Business contributed to this report.
