Mortgage insurers face larger safety net rule for VantageScore 4.0

New FHFA guidance sets higher required asset factors for loans using VantageScore 4.0 compared to Classic FICO, reflecting higher scores and shorter credit reporting periods for VantageScore. For example, a $300,000 loan with 85% LTV and a 680 score requires $4,980 more in assets under VantageScore. Insurers can choose either score grid if both are provided. The new rules, effective Sept. 30, aim to improve risk management but are not expected to significantly impact mortgage activity immediately.