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Fannie, Freddie move to single LLPA pricing grid for FICO and VantageScore

The shared LLPA grid removes the prior 20-point downward adjustment applied to VantageScore 4.0 scores, while Classic FICO remains an option.

Reported · Written up by our desk · Mortgages

HousingWire reports that FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will use one loan-level price adjustment, or LLPA, pricing grid for mortgages scored with either Classic FICO or VantageScore 4.0.

The update follows an earlier FHFA announcement that eligible conventional loans could use either Classic FICO or VantageScore 4.0, with the requirement that lenders use the same scoring model for all borrowers on a loan, HousingWire said.

Under the previous framework, VantageScore 4.0 scores had been subject to a 20-point downward adjustment, but the new shared pricing grid removes that adjustment, according to HousingWire.

Pulte also said the change does not eliminate FICO from the mortgage process, with Classic FICO still required for manually scored loans, HousingWire reported.

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