Key facts
- UWM will now obtain both FICO and VantageScore 4.0 on every credit pull.
- The company will automatically use the strongest qualifying score for each borrower.
- This change aims to deliver lower payments, cheaper mortgage insurance, and lower all-in fees.
- FHFA announced lenders can use either Classic FICO or VantageScore 4.0 for Fannie Mae and Freddie Mac loans.
- Rocket Mortgage will adopt VantageScore 4.0 as its default credit model for eligible loans starting Q4 2026.
United Wholesale Mortgage (UWM) announced Tuesday that it will implement a dual credit scoring model, obtaining both FICO and VantageScore 4.0 for every borrower's credit pull. The company will automatically select the strongest qualifying score to ensure borrowers receive the lowest possible payment, cheaper mortgage insurance, and reduced all-in fees.
This strategic shift aims to simplify the process for mortgage brokers, who will no longer need to manually choose between scoring models. UWM's system will internally compare FICO and VantageScore 4.0 results and apply the score that yields the best eligible pricing for the borrower.
The change aligns with new credit model frameworks supported by the Federal Housing Finance Agency (FHFA). In early September, the FHFA permitted all Fannie Mae- and Freddie Mac-approved lenders to utilize either Classic FICO or VantageScore 4.0. Subsequently, FHFA Director Bill Pulte announced that these enterprises would apply a uniform pricing matrix for loan-level price adjustments (LLPAs) regardless of the scoring model used.
Competitor Rocket Mortgage recently stated its intention to adopt VantageScore 4.0 as its default credit model for eligible loans, including conforming mortgages and VA loans, beginning in the fourth quarter of 2026. A four-month test by Rocket Mortgage involving 1.4 million credit reports indicated that some additional borrowers qualified using VantageScore 4.0, with those who saved money averaging $1,600 at closing.
The FHFA's push for a multi-model framework, including future acceptance of FICO 10T and a transition to two-bureau reports, is intended to foster competition among credit scoring providers and ultimately lower borrowing costs. Mat Ishbia, president and CEO of UWM, emphasized that the company's goal is to position borrowers favorably and simplify business for brokers by automatically handling credit model comparisons.