It seems that the United States government is looking for new ways to evaluate credit score requirements and they need your inputs and feedback to do this. The Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) to obtain feedback about the operational and competition considerations of changing Fannie Mae and Freddie Mac’s (the Enterprises) current credit score requirements. This is very critical since it will affect the future of the mortgage and real estate industry.
Credit Score Requirements Evaluation
According to the announcement the FHFA is looking into Classic FICO, FICO 9 and VantageScore 3.0. The Enterprises currently use Classic FICO for product eligibility, loan pricing, and financial disclosure purposes. In addition, the Enterprises have recently implemented changes that allow their automated underwriting systems to evaluate borrowers who do not have a Classic FICO credit score. (Read: How to improve your credit score)
Your Input is Needed to Improve Credit Score Evaluation
The Request for Input (RFI) provides a detailed information on how credit scores are being utilized by the Enterprises and the mortgage industry. It also includes information about the new credit score models that FHFA and the Enterprise are the evaluation, as well as credit score model options under consideration by FHFA.
“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,” said FHFA Director Melvin L. Watt. “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.”
If you want to send your inputs you need to submit it electronically or via mail.
- To submit electronically click this link and select “credit score” in the pull-down.
- To submit by mail you can send it to Federal Housing Finance Agency, Office of Housing and Regulatory Policy, 400 7th Street, S.W., 9th floor, Washington, D.C., 20219.
Remember that the deadline is only until February 20, 2018 (EXTENDED TO MARCH 30)
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that it will extend, from February 20, 2018 to March 30, 2018, the deadline for interested parties to provide input on potential changes to the credit score requirements of Fannie Mae and Freddie Mac (the Enterprises). FHFA is seeking input on all aspects of a potential change from the current Classic FICO requirement, including feedback on the operational and competition considerations of continuing to use a single credit score model or allowing the use of more than one credit score model.
Source: Federal Housing Finance Agency