Detroit, September 28 (Reuters) / PRNewswire / -- Rocket Mortgage ( Rocket Companies, NYSE : RKT subsidiaries) announced today that it will become the first mortgage institution to prioritize the use of VantageScore 4.0 as a credit scoring model for all eligible loans.
The company stated that after approximately four months of testing, it was found that VantageScore helps more customers qualify and advances the mortgage process, while also reducing the cost of credit scoring.
In the fourth quarter of 2026, the company will default to using VantageScore version 4.0 for housing loans to be delivered to Fannie Mae, Freddie Mac, VA, as well as any other eligible mortgage loans.
Rocket Mortgage CEO Jay Bray stated: "The mortgage industry has relied on a single credit scoring model for decades. Competition is healthy, especially when it can reduce costs and expand opportunities for responsible home ownership. We did our homework, compared these models, and chose the one that helps more qualified customers. Our mission to 'help everyone get back into their homes' makes this decision all the more justified. We are grateful for the leadership of Pulte Director, who encouraged the use of multiple credit scoring models, ultimately benefiting American homebuyers."
The company stated that, driven by innovation and competition, Rocket Mortgage has seen improvements in the ways it can assist people with purchasing homes and refinancing. To date, this year the company has obtained 1.4 million credit reports using two models: VantageScore and the issuance of F-tokens.
Rocket Mortgage has conducted extensive research and believes that VantageScore 4.0 can open up access for some customers who would not have been able to obtain services otherwise, and many people are able to get mortgage loans at better pricing conditions. For customers who saved costs through VantageScore 4.0, the average savings at the time of closing was $1,600.
The company stated that FHFA and Director Pulte are encouraging competition and innovation within the pilot projects. Rocket Mortgage is now ready to switch to the latest technology for credit scoring and will continue to evaluate as new options become available.
VantageScore 4.0 will assess how a person's credit behavior changes over time, including their balance and repayment patterns. When the model takes into account rental and utility payment information within the consumer's credit profile, it also includes this data in its evaluation, thereby generating scores for some consumers who would not be rated under traditional models but who are interested in purchasing a home. This additional financial history can provide lenders with more information to assess their credit standing.
This transition will apply to all consumer-facing loan products of Rocket Mortgage that currently allow the use of VantageScore. Currently, investment properties and second-home mortgages, home equity loans, FHA loans, large-value loans, and some other products will still use F tokens for issuance. Rocket Pro is the department of Rocket Mortgage that provides housing loans through mortgage brokerage partners. It will offer both VantageScore and F token issuance to mortgage brokers to reflect its commitment to brokers' choice. In addition to credit, mortgage approval also depends on income, debt, assets, property, and other loan requirements.
For more information, please contact the mortgage banker at RocketMortgage.com.
About Rocket Mortgage
Based in Detroit, Rocket Mortgage ( NMLS #3030) is the largest mortgage lender in the United States and is also a business under Rocket Companies ( NYSE : RKT ).
This institution helps Americans realize their dreams of owning a home and achieving financial freedom through a digitally-driven, industry-leading customer experience. At the end of 2015, the company launched its first fully digital, online mortgage experience. Since its establishment in 1985, Rocket Mortgage has completed over $2.1 trillion in mortgage transactions across 50 states in the United States.
As the parent company of Rocket Mortgage, Rocket Companies has made it into the top one-third of Fortune's "100 Best Employers" list for 23 consecutive years.
For more information and company news, please visit RocketCompanies.com / PressRoom.
