A New Credit Score Could Lower Mortgage Costs

A federal housing regulator expanded access to a newer credit score model, letting approved mortgage lenders choose it or the legacy model for eligible mortgages.
One mortgage executive described using the newer model to offer either a lower rate or a $2.7K lender credit for one borrower.
A lender said 1 in 4 borrowers received a more favorable credit result, potentially improving pricing, mortgage insurance costs, or loan eligibility.
Not every lender has adopted the option, and manually underwritten loans still require the legacy score model; pricing adjustments were aligned across both models recently.
Borrowers with limited credit histories, improving finances, or reported rent and utility payments may benefit, so consumers were urged to ask lenders about scoring options.