TransUnion announces breakthrough mortgage credit score pricing

TransUnion (TRU) is taking up FHFA Director Bill Pulte’s challenge to increase competition in mortgage credit scoring and lower the cost of borrowing for consumers. This pivotal policy shift empowers mortgage lenders to unlock the full benefit of trended and alternative credit data provided by TransUnion to reward consumers for responsible credit behaviors, while preserving the safety and soundness of the $13 trillion U.S. residential mortgage market. TransUnion announces breakthrough mortgage credit score pricing and product enhancements. At the center of this new approach is VantageScore 4.0, built on trended and alternative data, for unmatched predictive power and greater financial inclusion. Since 2016, when TransUnion pioneered trended data in the mortgage industry, the GSEs have required its use in underwriting mortgage loans to better predict risk. Now, with lender choice, lenders can use VantageScore to include the same trended and alternative data at the initial stages of a mortgage application, enabling 33 million credit-invisible consumers to be scored and millions more Americans to gain access to homeownership. TransUnion will offer this game-changing alternative at a significant discount to the FICO score. Leveraging these unique data assets, in 2026 TransUnion will offer: VantageScore 4.0 for mortgage at $4, representing a competitive option to FICO’s recently announced 100% price hike to $10. To enable lender choice, TransUnion will also provide free VantageScore 4.0 for mortgage to customers that purchase a FICO score from TransUnion through the end of 2026. Multi-year pricing for credit report and VantageScore 4.0 to help lenders effectively forecast and manage their businesses. This approach provides certainty to an industry burdened by steep annual FICO price increases. A free VantageScore 4.0 credit score simulator for industry participants that helps consumers gain access to mortgage credit – including resellers, lenders and brokers – empowering prospective homebuyers to improve their credit scores and qualify for the best possible mortgage terms.