A Lender’s Case for VantageScore

Ashley Sellers of Equifax sits down with Jordan Sullivan, Director of Retail Lending at CSL Financial, to explore how modern credit scoring is reshaping mortgage lending. As one of the first lenders to adopt VantageScore for underwriting, CSL shares real-world results, from higher approval rates and lower costs to stronger portfolio performance. The conversation dives into affordability, trended credit data, thin-file borrowers, and why delaying adoption of new credit models may be a competitive disadvantage for lenders navigating today’s evolving credit ecosystem. Economist Justin Begley of Moody’s Analytics provides our economic update. In this episode: Why did CSL Financial adopt VantageScore for underwriting? CSL Financial adopted VantageScore after internal testing showed it was a stronger predictor of credit risk than legacy models. The lender found it better aligned with borrower behavior and more effective for evaluating thin and non-traditional credit files. How does VantageScore help lenders approve more borrowers? VantageScore uses trended credit data to evaluate whether a borrower’s financial behavior is improving or declining over time. This allows lenders to make more informed decisions than snapshot-based models, helping qualified borrowers who may have been overlooked receive approval. What results has CSL Financial seen using VantageScore? Since adopting VantageScore, CSL Financial has increased loan pull-through rates from approximately 8% to nearly 20%, while maintaining stable delinquency levels. The lender has also reduced credit-related costs and improved portfolio performance. Who benefits most from VantageScore-based underwriting? Borrowers with thin credit files, limited credit history, or past credit challenges benefit most. This includes younger borrowers building credit and older consumers who have paid off debt and have limited active tradelines. Why is delaying VantageScore adoption a competitive disadvantage? Lenders who delay adoption risk higher costs, lower approval rates, and less accurate risk pricing. Early adopters like CSL Financial report both operational savings and stronger credit outcomes, making modern scoring models a competitive advantage.