Xactus Enhances Mortgage Lending by Introducing VantageScore® 4.0 Credit Scoring

Xactus Enhances Mortgage Lending Options with VantageScore® 4.0

In a pivotal move for the mortgage industry, Xactus, a renowned leader in verification solutions, has unveiled its support for the adoption of VantageScore® 4.0 by mortgage lenders. This announcement comes following a recent update from Fannie Mae and Freddie Mac which expands the availability of alternative credit scoring models. Approved lenders can now utilize either VantageScore® 4.0 or the traditional Classic FICO® score when originating and delivering eligible loans to government-sponsored enterprises (GSEs).

Understanding the Latest Developments

On September 9, 2026, the GSEs provided updated guidance allowing lenders to select their preferred credit score model on a loan-by-loan basis without the necessity of obtaining prior written approval. This rule simplifies the process for lenders, as they can choose the scoring model that best fits the profile of their borrowers. However, it's essential to note that the selected credit score model must remain consistent for all borrowers on a single loan, and the Classic FICO model is still mandatory for manually underwritten loans.

Flexibility in Choice

"Credit score modernization is moving from planning to execution, and lenders need flexibility as they determine the right approach for their businesses," stated Shelley Leonard, President of Xactus. This adaptability empowers lenders to navigate a multi-score environment, aligning their operations with their unique business requirements while ensuring compliance with existing GSE guidelines.

Xactus is poised to assist its clients in assessing operational readiness as they adapt to this evolving scoring landscape. By allowing lenders the choice of credit score, this development necessitates potential adjustments to internal systems, pricing strategies, underwriting processes, and other partnerships. Xactus is committed to supporting its clients in integrating these new credit score selections into existing workflows efficiently.

A Broader Vision for Credit Scoring

This expansion is part of a larger, multi-year initiative aimed at modernizing the credit scoring process within the mortgage industry. While Classic FICO remains an approved model, it will not be phased out anytime soon, ensuring stability for lenders. Furthermore, the GSEs plan to introduce FICO Score 10T in the near future and will provide detailed implementation guidance in advance of its rollout.

Simultaneously, the Federal Housing Administration (FHA) is working under separate guidelines and is set to accept VantageScore 4.0 beginning January 1, 2027. This anticipated acceptance will further entrench a multi-score environment that lenders can choose to leverage based on their individual needs.

Xactus’s Commitment to Transformation

Through its Intelligent Verification Platform®, Xactus360, the company remains focused on preserving lender choice while promoting transparent access to essential data. Xactus continues to work closely with its clients to provide the necessary technology, guidance, and services required to navigate these changes smoothly. To aid lenders, Xactus has established a comprehensive resource center that hosts the latest policy updates, implementation information, and educational materials.

As an industry pioneer and innovator, Xactus is dedicated to enhancing the capabilities of financial services with intelligent verification processes. By delivering advanced data and technology solutions, Xactus enables organizations to make informed decisions quickly, optimizing operational efficiency and minimizing waste.

With this latest development in credit score selection, Xactus is not just adapting to the evolving landscape; it's helping shape it. To learn more about Xactus and its groundbreaking initiatives within the mortgage industry, visit the company's official website or reach out for media inquiries.