Rocket Mortgage adopts VantageScore 4.0 as preferred credit scoring model
Rocket Mortgage announced it will become the first home lender to use VantageScore 4.0 as its preferred credit scoring model for all eligible loans. Testing indicated the model helps more clients qualify for mortgages and reduces costs.
Detroit – Rocket Mortgage, part of Rocket Companies (NYSE: RKT), has announced it will adopt VantageScore 4.0 as its preferred credit scoring model for all eligible loans. After a four-month testing period, the company found that the VantageScore model enabled more clients to meet credit requirements and facilitated mortgage qualification while reducing associated costs.
Starting in the fourth quarter of 2026, Rocket Mortgage will default to VantageScore 4.0 for mortgages delivered to Fannie Mae, Freddie Mac, VA home loans, and other eligible mortgage types. This transition is expected to broaden access to homeownership and potentially lower costs for consumers and mortgage brokers.
Jay Bray, CEO of Rocket Mortgage, stated that the mortgage industry has long relied on a single credit scoring model. He emphasized the benefits of competition, particularly when it can lower costs and expand responsible access to homeownership. The company reports that VantageScore 4.0 has helped more clients secure loans on better terms, with an average savings of $1,600 at closing.
The VantageScore 4.0 model assesses changes in credit behavior over time and incorporates rent and utility payment data when available in a consumer's credit file. This allows for scoring some individuals with limited credit histories, providing lenders with additional information to assess creditworthiness. The shift will primarily apply to direct-to-consumer loan products, while loans for investment properties, second homes, and certain other products will continue to use FICO scores.