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Optimal Blue integrates VantageScore 4.0 across mortgage workflows
The integration brings VantageScore 4.0 into pricing, eligibility, MSR valuation, and hedging and trading, and uses roughly 400% more data than legacy credit scores.
HousingWire reports that Optimal Blue has integrated VantageScore 4.0 into its end-to-end capital markets platform for mortgage lenders.
According to the announcement, lenders can access VantageScore 4.0 within Optimal Blue’s product, pricing and eligibility engine, mortgage servicing rights valuation, and hedging and trading tools, including for consumer prequalifications, government-backed loans, and Federal Home Loan Bank collateral pledging.
The move comes as Fannie Mae and Freddie Mac transition to credit score models approved for agency mortgages, with VantageScore 4.0 replacing the Classic FICO models previously used for decades, as directed by the Federal Housing Finance Agency.
VantageScore says its 4.0 model uses roughly 400% more data than legacy credit scores and incorporates alternative data as part of a tri-bureau approach, and it claims the model can score 33 million more consumers than competing models.