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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 10 December 2024 M T E C H VANTAGESCORE LAUNCHES MORTGAGE CENTER FOR MORTGAGE LENDERS V antageScore has unveiled a new Mortgage Resource Center to enable lenders transitioning to VantageScore 4.0 for mortgages. In 2018, the Credit Score Competition Act ushered in a new era of homeownership requiring the use of new and more mod- ern credit scores for mortgage lending including the VantageScore 4.0 credit score. This year, many of the largest government-sponsored mortgage enter- prises (GSEs) adopted VantageScore 4.0 with immediate effect. These GSEs include the Veterans Administration, Federal Home Loan Bank of New York, Federal Home Loan Bank of Chicago, and Federal Home Loan Bank of San Francisco. Fannie Mae and Freddie Mac will begin requir- ing VantageScore 4.0 in 11 months. VantageScore's Mortgage Resource Center is a comprehensive platform offering essential tools for lenders so they can start using VantageScore 4.0 immediately, including: • Migration Playbook: VantageScore's official Migration Playbook outlines how to implement VantageScore 4.0 for underwriting mortgages. • Digital Analytics Tools: Lend- ers gain timely data insights into the predictive and inclusionary power of VantageScore via a suite of free access tools: CreditGauge, a monthly analysis of U.S. consumer credit health; Inclusion360, which uncovers underserved consumers by geographic market; RiskRatio, which examines the relationship between credit scores and default levels, and MarketGain, which looks at the increased addressable market after implementing VantageScore 4.0. • Training Resources, Timeline, and Background Information: In-depth information about the FHFA's de- cision mandating VantageScore 4.0 for mortgage, key milestones, and implementation FAQs are available to help lenders plan their transition. "Adopting VantageScore 4.0 now is straightforward for lenders, and we're here to support them every step of the way with a comprehensive set of data tools and guidance," said Tony Hutchin- son, SVP, Industry and Government Relations, VantageScore. "An immedi- ate transition ensures lenders remain well-positioned to continue doing busi- ness with Fannie Mae and Freddie Mac, as well as the other principal GSEs that can accept VantageScore mortgages right now. If you are a lender, you need to be implementing VantageScore 4.0 now or risk losing access to key mortgage GSEs." ZILLOW'S REAL-TIME AFFORDABILITY TOOL ASSISTS SHOPPERS FIND HOMES WITHIN THEIR BUDGET H ome shoppers now have a way to instantly understand if a home on Zillow fits within their budget. BuyAbility is an affordabil- ity tool from Zillow Home Loans that gives buyers a real-time, personalized estimate of the home price and monthly payment they can afford, and their like- lihood of qualifying for a loan. Instead of wasting time on homes they can't afford, shoppers can now clearly and quickly identify homes on Zillow within their true budget. Simulated Images BuyAbility is the tool for this mo- ment. Homeownership can feel out of reach for aspiring first-time buyers who are daunted by today's high prices and may not feel ready to share their finan- cial details with a loan officer. Volatile mortgage rates have made it difficult to know how much home they can afford, and their ability to qualify for a loan can change from day to day. BuyAbility is powered by real-time mortgage rates from Zillow Home Loans and makes up- dates whenever rates move up or down, or when a prospective buyer improves their credit score, their debt-to-income ratio, or saves more for their down payment. "Mortgage rates have been on a wild ride this year," said Orphe Divounguy, a Senior Economist for Zillow Home Loans. "With improving inflation numbers and more balanced econom- ic activity, mortgage rates could ease slightly heading into the new year. That will mean more affordability and more options for home shoppers. Buyers will be in a stronger position to act quickly when the right home enters their BuyAbility, bringing them one step closer to the American Dream of homeownership." Shoppers can access BuyAbility from the Home Loans tab on the Zillow app. They enter their basic financial information, including their income, credit score, monthly debt payments, the amount saved for a down payment, and the amount they're comfortable spending each month. Within seconds, they get their BuyAbility: an estimate of the home price they are likely to qualify for, and a suggested budgeted maximum price based on their desired monthly pay- ments. When they browse Zillow, listings will be clearly tagged when they are with- in that shopper's BuyAbility, providing instant clarity on whether they are likely to qualify for a loan on that home. BuyAbility accounts for the one ma- jor factor that basic mortgage calculators neglect: the interplay between mortgage rates and a buyer's financial situation. Shoppers with higher credit scores or a lower debt-to-income ratio will qualify for a lower mortgage rate, which has a huge impact on their buying power. Assuming a 20% down payment and a fixed-rate mortgage, a median-income household would be able to afford a $380,000 home with a 7% mortgage rate. That same household could afford the monthly payments on a $420,000 home with a 6% mortgage rate.