Core Insights - The minimum credit score requirement for conventional loans has been effectively eliminated, allowing broader access to credit for underserved borrowers [1][3][4] Group 1: Changes in Credit Scoring - The Federal Housing Finance Agency (FHFA) has mandated an expansion of credit scoring models used by Freddie Mac and Fannie Mae, which finance over half of U.S. home loans [2] - Fannie Mae removed its minimum credit score requirement on November 15, 2025, as part of an update to its Selling Guide [3] - New credit models, including VantageScore 4.0 and FICO 10T, will be utilized to provide a more comprehensive view of consumer credit behavior [4][6] Group 2: New Credit Models - VantageScore 4.0 and FICO 10T incorporate "trended data" and alternative credit data, which track credit changes over time and consider payment histories for rent, utilities, and phone services [5][6] - These new models aim to expand access to credit for traditionally underserved groups, such as first-time homebuyers and young adults [6][9] Group 3: Underwriting Process - Despite the removal of the minimum credit score requirement, the underwriting process for loan approval remains largely unchanged [7][8] - Lenders still have the option to use traditional FICO scores or the new creditworthiness models, and may not be fully ready to abandon qualifying credit scores [10] Group 4: Impact on Borrowers - Approximately 5 million prospective buyers are estimated to benefit from the new credit modeling [9] - A better credit score can lead to lower mortgage rates, reduced lender fees, and smaller down payments [13]