Macro EconomyMedium•12 October 2026•
1 min read
Fannie Mae and Freddie Mac Adopt New Credit Model to Lower Mortgage Costs
Key Facts
1Fannie Mae and Freddie Mac are adopting a rival credit-scoring model to FICO to potentially lower mortgage costs.
2The Trump administration supports the shift while some lenders warn of increased underwriting risks.
Fannie Mae and Freddie Mac are adopting a rival credit-scoring model to the traditional FICO system to potentially lower mortgage costs. The Wall Street Journal reported that the transition aims to modernize the mortgage market and foster competition by reducing barriers for borrowers.
The Trump administration supports the shift, while some lenders warn of increased underwriting risks and concerns regarding risk assessment accuracy. This structural change follows data showing the MBA 30-Year Mortgage Rate reached 7.49% on October 7, 2026, up from a previous 7.3%.