FHFA Validates Classic FICO for Fannie Mae, Freddie Mac

The Federal Housing Finance Agency said today it has validated and approved the use of the classic FICO credit score model by Fannie Mae and Freddie Mac. Evaluating new credit score models was mandated by the S. 2155 regulatory reform law.

This approval allows Fannie and Freddie to continue supporting the mortgage market while assessing other modern credit score models.

FHFA said it expects it will take Fannie and Freddie an additional year to complete the validation and approval process of the remaining credit score models currently under consideration.