VantageScore mortgage pilot is political puffery
The guest argued that the FHA pilot program allowing VantageScore 4.0 for mortgages is unworkable because the industry's software infrastructure is not ready.
The argument
The guest explained that mortgage vendors and loan origination software systems, such as those owned by ICE, do not currently have the functionality to process Vantage scores for conventional loans. He characterized the announcement as political posturing rather than a functional change.
The thesis, stress-tested
✓ What validates it
- ✓Mortgage originators reporting zero or negligible volume of loans processed using VantageScore 4.0
- ✓Software providers delaying the rollout of VantageScore integration features
▸ Risks discussed
- ▸Rapid software updates by ICE or other vendors could enable VantageScore adoption faster than expected
- ▸Government mandates could force immediate compliance despite technical hurdles
Hear it yourself
"And now finally, Bill Pulte has issued this announcement along with the head of the FHA that basically says that you can use either the FICO score or the Vantage four point o when you're doing a mortgage."
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