Reliable renters who paid bills for years but lacked traditional credit scores now qualify for home loans, unlocking doors for tens of millions locked out by outdated systems.
Story Highlights
- FHFA directs Fannie Mae and Freddie Mac to adopt VantageScore 4.0, which factors in rent and utility payments into mortgage credit scores.
- Director William Pulte announces immediate rollout to approved lenders, with Freddie Mac testing $10 million in loans.
- Trump administration breaks Washington gridlock to prioritize American homebuyers over special interests.
- A separate order mandates $200 billion in mortgage-backed securities purchases to temporarily lower rates.
- Policy rewards consistent payers, modernizing access while maintaining lending safety.
FHFA Launches VantageScore Integration
FHFA Director William J. Pulte directed Fannie Mae and Freddie Mac to implement VantageScore 4.0 for mortgage evaluations. This model incorporates rent and utility payment histories with traditional credit data.
Pulte held a press conference to announce the change, which benefits tens of millions of Americans who were previously sidelined by thin credit files. Lenders choose between VantageScore and FICO scores.
Freddie Mac already delivered $10 million in tested loans for securitization. The rollout starts immediately, with only approved lenders.
Trump administration makes Fannie, Freddie change it says will benefit 'tens of millions' of Americans https://t.co/F7vysmnvgR
— FOX Business (@FoxBusiness) April 24, 2026
Trump Administration Overcomes Gridlock
President Trump enabled the shift through FHFA leadership under Pulte. Last year, Pulte signaled on X that credit evaluations would expand beyond credit cards and loans.
The administration frames this as a golden age of home buying by rewarding renters and utility payers. FHFA rolled back Biden-era housing goals on December 23, 2025, refocusing on middle-class access over quotas. Critics called prior mandates harmful distortions favoring special interests over everyday Americans.
GSEs Evolve Under Conservatorship
Fannie Mae Executive Vice President Jake Williamson stated that VantageScore 4.0 provides superior predictive power for sustainable lending. Freddie Mac participates actively in testing.
Both GSEs remain under the 2008 conservatorship with statutory portfolio caps of around $200 billion. They buy loans from lenders, securitize them into mortgage-backed securities, and provide market liquidity.
Post-2008 reforms reduced reliance on old FICO models alone. Current high rates from 7% to the low 6% persist amid Fed policies and tariffs.
MBS Purchases Target Rate Relief
Trump ordered GSEs to purchase $200 billion in mortgage-backed securities in January 2026. This builds on the $40 billion bought since July 2025. Spreads tightened by 40 basis points, potentially dropping rates below 6% short-term.
Experts note that the effects remain modest in the $9 trillion market. GSEs previously bought bonds they had sold before 2008, spurring lending. The COVID-era Fed actions quickly absorbed $600 billion to maintain stability. Caps limit scale compared to past interventions.
Trump administration makes Fannie, Freddie change it says will benefit 'tens of millions' of Americans https://t.co/F7vysmnvgR
— FOX Business (@FoxBusiness) April 24, 2026
Impacts Reward Responsibility
Renters with decade-long payment histories earn higher scores and better qualification odds. Middle-class families benefit most from refocused goals. Lenders originate more loans flexibly.
Short-term, rates may fall 25-40 basis points, boosting volume. Long-term access expands safely, though home price inflation risks affordability without supply growth.
This aligns with the values of personal responsibility over handouts. Facts support Pulte’s optimism about scale despite skepticism about MBS limits.
Sources:
Fannie and Freddie Empowered to Support Middle-Class Homeownership
What happens if Fannie Mae buys up mortgage-backed securities
