FHA put a date on alternative credit scores yesterday. Mortgagee Letter 2026-11, "Updated Minimum Decision Credit Score Methodology for the Implementation of Alternative Credit Scores," formally adds VantageScore 4.0 and FICO Score 10T as acceptable models alongside Classic FICO for Title II programs, for FHA case numbers assigned on or after January 1, 2027. The letter sets how the Minimum Decision Credit Score is determined at the transaction level when more than one model is submitted, and TOTAL Scorecard Version 5.0 releases the same day. FHA's announcement (FHA INFO 2026-24) points lenders to its Alternative Credit Scores Preparedness Guide and a Q&A, and to daily virtual office hours with FHA staff from November 16 through 20 at 2:30 pm Eastern, with more sessions after launch. It also asks lenders to confirm with their credit and technology partners now that their systems will be ready.
Yesterday's edition led with the September FOMC minutes showing most participants expected another hike by year end. Fed Governor Christopher Waller put his own name on that view Thursday in Istanbul: "I anticipate additional hikes to support a timelier return of inflation to our 2 percent goal," he said, adding that "the hikes do not need to come at consecutive meetings." He noted that 16 of the 18 participants who submitted projections in September anticipated at least one more hike during the two remaining meetings this year, and that futures markets put about an 85 percent chance on at least one hike by December.
Bonds took the week's tone in stride on Thursday. Treasury's daily curve closed the 10-year at 5.22%, down 6 hundredths from Wednesday's 5.28%, and it is trading near 5.24% early today. Freddie Mac's weekly survey caught up with the earlier run-up instead: the PMMS 30-year rose for a seventh straight week to 7.40% from 7.28%, against 6.30% a year ago. MBA also said mortgage credit availability slipped in September as lenders pulled back on cash-out refinance and investor purchase programs, with both conventional and jumbo offerings contracting.
Bankrate's conventional 30-year reads 7.54% this morning, essentially flat on the day, 7 hundredths above a week ago's 7.47% and a hundredth under the top of its 90-day range of 6.58% to 7.55%. On a $400,000 loan that is about $2,808 a month in principal and interest, against about $2,789 a week ago and about $2,549 at the 90-day low. The next scheduled catalysts are CPI in the October 10 to 15 window, Consumer Sentiment in a window that opens October 13, housing starts and permits in the October 16 to 18 window, and the Fed's October 27 to 28 meeting, which does not carry a dot plot.
On the industry side, eXp Realty and Newrez announced Revenos Mortgage, a joint venture slated to go live in early 2027, which puts another agent-affiliated lender into the purchase channel. HousingWire, citing ICE data, reports that the FHA purchase share for nonpermanent residents fell from 5.8% to 0.1% after HUD's May 2025 residency rule change. And MISMO published testing guidelines for automated valuation models, noting that a model that tests well on purchase loans may perform differently on home equity and refinance transactions, where there is no new sale price to anchor the value.
Ask your credit vendor and your LOS administrator when they will deliver VantageScore 4.0 and FICO 10T on FHA files, and put the November 16 FHA office hour on your calendar so your team's questions are answered before the January 1 case-number cutover!