Experian offers free VantageScore 4.0 to lenders

Experian (EXPGY) announced a new offer to provide the VantageScore 4.0 credit score for free to its U.S. mortgage clients. “This move reinforces Experian’s support of Federal Housing Finance Agency Director Pulte’s call to uncover creative ways to make the credit scoring industry more competitive and mortgages more affordable for Americans… By offering a free VantageScore 4.0 indefinitely, Experian is giving mortgage lenders time to evaluate the full benefit of VantageScore during the underwriting process. If Experian does charge, the company will offer VantageScore 4.0 for at least a 50% discount compared to what FICO charges for its score. Experian’s pricing reflects that the primary value lies in the data and not the score,” the company stated. “Experian is dedicated to fostering a more competitive mortgage landscape, creating a safer and sounder market, and expanding access to homeownership for a wider range of consumers. Making VantageScore 4.0 more easily accessible and widely available for the mortgage market accelerates the adoption of VantageScore 4.0 among mortgage lenders,” said Brian Cassin, Experian’s CEO. Shares of credit bureaus Equifax (EFX), TransUnion (TRU) and Experian previously fell after FICO (FICO) launched its Mortgage Direct License Program, which gives tri-merge resellers the option to calculate and distribute FICO Scores directly to their customers.