People in the mortgage industry are being invited to give their thoughts about changing credit score models that are utilized by the government-sponsored enterprises.
Current credit score requirements at Fannie Mae and Freddie Mac allow the Classic FICO score to be used
for product eligibility, loan pricing and financial disclosure purposes.
But new credit scoring models are being considered for the pair of secondary mortgage lenders. They include FICO 9 and VantageScore 3.0 as well as Classic FICO.
So their regulator and conservator, the Federal Housing Finance Agency, Wednesday issued a Request for Input in order to get feedback about the
operational and competition considerations of a change.
The request offers background information on the current use of credit scores by the GSEs and the industry. It also discusses the options being considered and a
discussion of operational and competition considerations.
“In issuing this RFI, FHFA hopes to obtain honest and reliable information and stakeholder feedback on the operational and competition aspects of changing Fannie Mae and Freddie Mac’s credit score requirements,” FHFA Director Melvin L. Watt said in today’s statement. “Responses to the RFI will provide important details on the complexities of this decision, which is why I encourage stakeholders to respond in the most meaningful way possible.”
The Request for Input can be viewed online at www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/CreditScore_RFI-2017.pdf.
Input can be submitted online at www.fhfa.gov/AboutUs/Contact/Pages/Request-for-Information-Form.aspx.
