A planned implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie has been paused in response to industry feedback, the Federal Housing Finance Agency announced today.
Under the policy, Fannie Mae and Freddie Mac would replace the current FICO credit score model with the FICO 10T and the VantageScore 4.0 credit score models and transition from requiring three credit reports to two for single-family loans. The changes were originally set to take place in the fourth quarter of this year. However, in a notice today, FHFA said it has pushed back implementation to a “to-be-determined date.”
“We remain committed to working closely with all industry stakeholders to ensure the market has time to plan for and understand the transition,” FHFA said in a notice. “Additional implementation and timing details will be provided as soon as they are available.”
The American Bankers Association and four associations last year requested FHFA make public the analyses that drove the changes, saying greater transparency was needed to ensure a smooth transition to the new model. ABA had previously raised concerns with FHFA about the public comment process for the initial rule and urged the agency to provide more time for stakeholder feedback.
