CrossCountry Mortgage reports average $2,500 savings with VantageScore 4.0

CrossCountry Mortgage announced that borrowers are saving an average of $2,500 per transaction following the lender's adoption of the VantageScore 4.0 credit scoring model, HousingWire reported.

The lender observed a 62 basis point reduction in loan-level price adjustments (LLPAs) during the first 60 days after implementing VantageScore 4.0 for loans where the new model produced a more favorable credit score than the previous one, according to HousingWire.

CrossCountry Mortgage also removed its previous 80% loan-to-value cap, allowing a full range of eligible LTV ratios for loans eligible for purchase by Fannie Mae and Freddie Mac. Additionally, the lender expanded Department of Veterans Affairs lending options to better serve eligible veterans and active-duty service members.

VantageScore 4.0 has gained traction in the mortgage industry after approval by the Federal Housing Finance Agency for use by lenders originating loans through government-sponsored enterprises. Other lenders, such as Rocket Mortgage, have also reported consumer cost savings after adopting VantageScore 4.0, HousingWire noted.