The Washington Report

On Tuesday, July 8th, Federal Housing Finance Agency (FHFA) Director Bill Pulte announced on X (formerly known as Twitter) that Fannie Mae and Freddie Mac (the GSEs) will begin accepting VantageScore 4.0 for mortgage underwriting. This change, which happens with immediate effect, hopes to create more qualified borrowers by modernizing credit scoring models in addition to the traditional FICO score.

VantageScore 4.0 includes additional data points—such as rental, utility, and telecom payments—in the credit report, rewarding borrowers for making timely payments. These other data points have traditionally been excluded from credit reports.

NAR has long advocated for the modernization of the credit scoring system, including the use of additional data points, to help borrowers—especially those with limited credit. The change gives potential homebuyers an extra boost that can either qualify them for a mortgage or lower the cost of the loan.

The acceptance of a new model also increases competition and will likely lead to lower credit report costs and more accurate reports.

NAR previously sent a letter with other industry partners encouraging the adoption of VantageScore 4.0.

NAR will continue to work with FHFA and Congress to bring further updates to credit scoring to give more qualified borrowers the opportunity to buy a home.

On July 8, NAR sent a letter to the leadership of the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban Development, requesting full funding for essential housing programs in the FY 2026 appropriations bill. The letter emphasizes that America faces an unprecedented housing crisis with an inventory shortage making housing increasingly unaffordable and pushing the American Dream of homeownership further out of reach for families.

NAR's funding priorities include maintaining robust support for programs that help communities address the full spectrum of housing needs while supporting efficient real estate transactions by reducing barriers to homeownership.

The letter requests full funding for the Housing Choice Voucher program, which provides housing stability for millions of families and a consistent source of income for mom-and-pop landlords. The program's success depends on collaboration with local property owners, including many REALTORS®, and benefits both families and property owners participating in the program. Full funding ensures these vital partnerships can continue and expand, supporting housing choice for families and stability for property owners across the country.

NAR also supports robust fair housing enforcement through full funding of the Fair Housing Initiatives Program, the Fair Housing Assistance Program, and adequate staffing of HUD's Office of Fair Housing. In the letter, NAR notes that many REALTOR® associations collaborate with local fair housing centers on education and advocacy initiatives, and discrimination in housing can derail transactions, creating costly setbacks for all parties involved.

Additional priority programs include the HUD Housing Counseling Assistance program, which helps first-time buyers navigate an increasingly difficult housing market, and the HOME Investment Partnerships and Community Development Block Grant programs, which provide locally-driven approaches to address pressing housing needs while leveraging private sector investment.