TransUnion Extends 99-Cent VantageScore Pricing Through 2028
- TransUnion has extended its 99-cent price for the VantageScore 4.0 credit-scoring model through Dec.
- Between January and September of this year, adoption of VantageScore 4.0 expanded to more than 1,100 mortgage lenders, according to TransUnion data.
- The extended pricing structure comes at a critical juncture for mortgage credit scoring.
TransUnion has extended its 99-cent price for the VantageScore 4.0 credit-scoring model through Dec. 31, 2028, providing mortgage lenders with nearly three more years of pricing predictability. The pricing commitment arrives as adoption of competing credit-scoring models moves beyond evaluation and deeper into actual loan production across the United States mortgage market.
VantageScore 4.0 Adoption Expands Across Mortgage Operations
Between January and September of this year, adoption of VantageScore 4.0 expanded to more than 1,100 mortgage lenders, according to TransUnion data. However, Satyan Merchant clarified in an interview with National Mortgage Professional that enabling the model does not mean every enabled lender is currently originating mortgages with it.
“When we refer to adoption, we mean that a lender has enabled VantageScore 4.0 within its mortgage workflow and has the capability to use it in its operations,” Merchant told National Mortgage Professional. Lenders utilize this capability in various ways, ranging from production originations and eligibility assessments to score choice strategies, secondary market execution, and portfolio analysis.
Federal Policy Changes and Lender Pricing Breakdown
The extended pricing structure comes at a critical juncture for mortgage credit scoring. The Federal Housing Finance Agency expanded VantageScore 4.0 availability on Sept. 9, permitting approved Fannie Mae and Freddie Mac lenders to use either VantageScore 4.0 or Classic FICO on eligible government-sponsored enterprise loans without seeking prior approval. Under TransUnion’s program, a standalone VantageScore 4.0 mortgage origination score stays at 99 cents through the end of 2028. TransUnion also supplies the score at no additional charge to mortgage customers who purchase a FICO score.
Merchant noted that obtaining a VantageScore 4.0 score from each of the three nationwide credit bureaus brings the aggregate score charge to roughly $3 per consumer application. While this reduces the score-related portion of credit costs, it does not eliminate other credit report expenses since the Federal Housing Finance Agency has kept existing credit-reporting requirements in place. TransUnion cites a Deep Future Analytics analysis estimating that its pricing could generate more than $900 million in potential savings for lenders and consumers, though this figure represents modeled potential savings rather than realized market totals.
Evaluating Competing Scoring Models in Loan Production
Pricing is only one variable lenders weigh when choosing scoring models. Merchant emphasized that organizations evaluate predictive performance, borrower eligibility, loan economics, operational readiness, and historical portfolio data.
Evidence of these operational evaluations is visible among major market participants. Rocket Mortgage announced that it will make VantageScore 4.0 its preferred model for eligible retail mortgages following a four-month testing period. Rocket reported that across 1.4 million credit reports pulled using both scoring models this year, VantageScore helped certain borrowers meet credit requirements or secure better pricing, yielding average savings of $1,600 at closing for those who saved money. Meanwhile, Rocket Pro maintains both scoring models for mortgage brokers, allowing them to compare results for eligible borrowers.
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