The Federal Housing Finance Agency on 8 July authorised mortgage giants Fannie Mae and Freddie Mac to recognise rent-payment histories and the VantageScore 4.0 credit model when evaluating borrowers. The directive, effective immediately, broadens the data lenders can use beyond traditional credit cards and loans, aiming to help ‘credit-invisible’ renters — particularly younger and lower-income households — qualify for home loans. FHFA Director Bill Pulte said the change implements the Credit Score Competition Act championed by Senator Tim Scott and aligns with the Trump administration’s efforts to reduce barriers to homeownership. Lenders that adopt both VantageScore and legacy FICO scores may receive pricing incentives designed to lower borrowing costs, according to the agency. Investors reacted swiftly. Shares of Fair Isaac Corp., whose FICO score has long dominated mortgage underwriting, fell roughly 15 % on Tuesday and are now about 28.5 % below their recent high, reflecting concerns that wider acceptance of VantageScore and alternative data could erode the firm’s franchise.