TransUnion, responds to FHFA Director Bill Pulte’s call to promote competition in mortgage credit scoring and lower borrowing costs for consumers. This strategic pivot allows mortgage lenders to leverage TransUnion’s trended and alternative credit data to reward responsible behavior, while safeguarding the $13 trillion U.S. residential mortgage market. Today, TransUnion introduces new mortgage credit tools pricing and product upgrades. At the core is VantageScore® 4.0, built on trended and alternative data, for improved predictiveness and wider financial inclusion. 

Since 2016, TransUnion has led with trended data in mortgages, and GSEs now require it for underwriting to better assess risk. With new lender choice, VantageScore 4.0 can be used early in mortgage applications. That enables 33 million credit-invisible consumers to be scored, giving more Americans access to homeownership. TransUnion offers this alternative at a deep discount to FICO’s price increase.

“TransUnion reaffirms its mission to expand affordable mortgage credit by combining premium credit data with user-friendly tools for lenders and consumers,” said Chris Cartwright, President and CEO.

TransUnion’s Enhanced Mortgage Tools

“Trended and alternative credit data unlocks a fuller consumer profile, and TransUnion’s new solutions bring this data into mortgage lending to benefit all participants,” said Satyan Merchant, Senior VP and mortgage business leader at TransUnion.

TransUnion uniquely provides 30 months of trended credit data. It now adds alternative data like rental and utility tradelines plus short-term lending attributes to its mortgage credit report. These insights help more creditworthy borrowers qualify for home ownership.

Starting in 2026, TransUnion will offer:

  • VantageScore 4.0 for mortgage at $4, a competitive alternative to FICO’s $10 hike. If a lender purchases a FICO score from TransUnion this year, they’ll also receive VantageScore 4.0 for mortgage free through 2026.
  • Multi-year pricing for credit reports and VantageScore 4.0, giving lenders better predictability amid volatile FICO price hikes.
  • A free VantageScore 4.0 simulator for lenders, brokers, resellers and consumers to improve credit understanding and mortgage eligibility.

All features will roll out on TransUnion’s TruIQ™ analytics platform. TruIQ merges TransUnion’s data into a single cloud-native analytics tool that integrates first- and third-party data. This platform empowers lenders to stay agile and competitive in a fast-shifting environment.

The Value of VantageScore

As the first mortgage score powered by trended data, VantageScore 4.0 opens credit access to more consumers. With trended and alternative data embedded, lenders, GSEs, and investors gain a comprehensive consumer view, ensuring mortgage underwriting remains safe and sound. Major banks and over 3,700 U.S. institutions already use VantageScore. Over 220 million consumers have direct access to their VantageScore nationwide.

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News Source: Globenewswire.com