The Federal Housing Finance Agency today issued a long-awaited request for input on the credit scoring models required by Fannie Mae and Freddie Mac. The RFI came after the American Bankers Association and other financial and housing trade associations earlier this year urged FHFA to engage with the industry as it works to determine which credit scoring models should be acceptable or required for lenders to use when selling loans to the GSEs.
ABA welcomed FHFA’s action, noting that the use of credit scoring models is an important aspect of mortgage origination. The association added FHFA must consider the effects of any changes to credit scoring requirements before proceeding, as such changes can have a profound impact on lenders’ ability to safely and soundly underwrite loans and ensure fair and equitable treatment of loan applicants.
Comments are due Feb. 20, 2018. ABA will comment on the request and will be forming a working group to assist in the preparation of a comment letter. For more information or to join the working group, contact ABA’s Joe Pigg.