Additional option available to help member financial institutions serve creditworthy homebuyers
FHLBank Topeka announced that its 637 member financial institutions can now pledge mortgage collateral using VantageScore credit scores as an alternative to the Classic FICO credit score model.
By considering rental payments and other consumer credit data in its scoring algorithms that are not included in traditional scoring models, VantageScore provides an innovative solution aimed at expanding access to support sustainable homeownership.
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The expansion of eligible one to four family residential mortgage collateral that can be pledged by member financial institutions to FHLBank Topeka promotes mortgage lending to creditworthy homebuyers who have historically been left out of conventional credit models.
“FHLBank Topeka is proud to expand our mortgage collateral options by adding another acceptable credit scoring model,” said Jeffrey Kuzbel, President and CEO of FHLBank Topeka. “Adding to other innovative tools like our down payment assistance grants, reduced-rate mortgage programs and housing bond investments, this enhancement reflects our ongoing commitment to making homeownership more attainable.”
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