FORT WASHINGTON, PA — Newrez LLC, a subsidiary of Rithm Capital Corp. (NYSE: RITM), said it participated in a limited loan delivery engagement with Freddie Mac that helped validate the use of VantageScore 4.0 for loans originated, underwritten, priced and delivered to government-sponsored enterprises, the company announced.
The engagement supported broader efforts by the Federal Housing Finance Agency, Freddie Mac and Fannie Mae to modernize credit scoring requirements for mortgage lending.
Newrez said its participation demonstrated the operational readiness needed for industry adoption of VantageScore 4.0 within the GSE framework.
The agencies, along with the U.S. Department of Housing and Urban Development and the Federal Housing Administration, announced coordinated policy updates allowing the use of VantageScore 4.0 and, in the future, FICO Score 10T for loans delivered to the GSEs.
The changes mark one of the most significant updates to GSE credit scoring requirements in nearly 30 years, according to the announcement.
Baron Silverstein, president of Newrez, said the company’s work across origination, technology and secondary markets contributed to demonstrating feasibility for the updated model.
“Our team’s investment in operational readiness … demonstrates what is achievable when a leading lender and a GSE partner with shared purpose,” Silverstein said.
VantageScore 4.0 incorporates additional data points, including on-time rent payment history and trended credit data, which are not included in older models.
The company said the expanded data inputs could increase access to credit for borrowers who have historically been underserved.
Newrez, founded in 2008 and headquartered in Fort Washington, operates across retail, wholesale, correspondent and direct-to-consumer mortgage channels and is among the largest mortgage lenders and servicers in the United States.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.