As the Federal Housing Finance Agency considers how to transition to a new credit score model or models—as required by the 2018 S. 2155 law—ABA and several other financial trade groups urged FHFA to provide the industry with “additional data, a detailed transition plan that is subject to stakeholder input and ample time for any transition.”
The groups emphasized that furnishers of credit must have “adequate insight to project performance,” in order to ensure a highly liquid secondary mortgage market that ultimately benefits consumers. “To advance these goals and achieve these outcomes, we urge FHFA to engage in careful communication and planning to maintain lender and investor confidence through the transition to any new score or system of scores,” they said.
