The Federal Housing Finance Agency today released an FAQ on the recent announcement that Fannie Mae and Freddie Mac will expand credit scoring options. Fannie and Freddie have also created webpages about the planned implementation of the policy.
FHFA Director Bill Pulte last week directed the government-sponsored enterprises, or GSEs, to allow lenders the option to use VantageScore 4.0 while still allowing use of FICO to assess the creditworthiness of mortgages. The FAQ explains why FHFA is pursuing the changes and what lenders can expect. No timeline has been given for when the changes take effect, with FHFA saying the GSEs are currently completing the final steps for delivery of loans scored using VantageScore 4.0.
The American Bankers Association, Mortgage Bankers Association and two other organizations last week issued a joint statement saying that while the changes could help create a more transparent and more competitive credit scoring system, there remain unanswered questions about how they would be implemented.
“Our organizations stand ready to partner with the GSEs to resolve these questions quickly,” the associations said. “Strong and fast collaboration between GSEs and industry stakeholders will be necessary to realize the vision of true competition for credit scores and lower costs for consumers. We look forward to working together.”
