Rocket Mortgage shifts to VantageScore 4.0, aiming to increase loan approvals and lower borrower costs by leveraging a more inclusive credit scoring model across its mortgage portfolio.
Rocket Mortgage's adoption of VantageScore as its preferred scoring model on all eligible loans may expand its addressable borrower pool and lower costs, positively impacting Rocket Companies.
Rocket Mortgage, a subsidiary of Rocket Companies (RKT), has become the first major lender to adopt VantageScore 4.0 as its primary credit scoring model. The move follows internal testing indicating that the model allows more applicants to meet credit requirements while simultaneously reducing costs for borrowers.
The company adopted the model after testing revealed it helps more potential borrowers meet credit requirements and provides cost savings compared to traditional scoring methods.