Homeownership + the K-shaped economy

The K-shaped economy has carried into the new year—continuing to widen the gap in economic mobility, especially around homeownership.

As VantageScore president and CEO Silvio Tavares said on CNBC’s Squawk Box in December 2025:

“One of the biggest drivers of the K shape is one single item: homeownership. Those consumers who own their own home have the ability to have more of a cushion when the economy is rough.”

Why VantageScore matters for mortgage lenders:

• Score more borrowers: VantageScore 4.0 can generate credit scores for millions more consumers than traditional models—including many with limited credit histories—helping more borrowers become mortgage-eligible.
  
• Predictive power: Independent analyses show VantageScore 4.0 delivers strong predictive performance—identifying more risk and offering lenders better insights when assessing mortgage applications.
  
• FHFA approval: Lenders selling loans to Fannie Mae and Freddie Mac can now use VantageScore 4.0 alongside FICO, bringing choice and modern scoring into mortgage underwriting.
  
• Expanded market access: By scoring more consumers—including those traditionally underrepresented—you can help increase homeownership opportunities and grow your originations.

Now’s a great time to integrate VantageScore into your lending strategies! Through 2026, Equifax is offering free VantageScore 4.0 credit scores to all customers who also purchase FICO scores.