The Score

Bank of America: VantageScore 4.0 is “Better” for Mortgage

VantageScore

To date, nearly all mortgage loans continue to use outdated credit scoring models, though in other loan categories, much newer, more predictive, and inclusive models are most commonly used. 

But the mortgage industry is advancing. By next year, all mortgage loans backed by Fannie Mae and Freddie Mac will require a VantageScore 4.0 credit score. In advance of this change, Bank of America recently issued an independent research report analyzing the VantageScore 4.0 mortgage data set. 

 Pratik Gupta is the Head of CLO & RMBS Research at Bank of America Securities. Pratik joins The SCORE this week to discuss the findings of Bank of America’s recent research into VantageScore 4.0. Pratik outlines his findings and reasons his team of analysts concluded it’s “better” for mortgage than the incumbent score. 

Listen in to learn more.