WASHINGTON (3/7/16)--Fannie Mae and Freddie Mac continue to assess the feasibility of using updated or alternate credit score models in their business operations, according to their 2015 scorecard. Released by the Federal Housing Finance Agency (FHFA) last week, the scorecard summarizes how the agency met its goals for the previous year, and how it will work to accomplish them this year.
One of the 2015 goals was for Fannie and Freddie to increase access to mortgage credit for creditworthy borrowers, and assessing the feasibility of different credit scores is a part of this goal.
“As part of their work in 2015, the Enterprises assessed relevant factors, including the operational and technological implications of any changes for the Enterprises and the broader housing finance industry,” the report reads. “This involved data and business process analysis to assess the impact not only to the Enterprises, but also to consumers, sellers, investors, and vendors.”
According to the FHFA, this issue remains an ongoing priority and is included again in the Fannie and Freddie 2016 scorecard.
“FHFA will continue to work with the Enterprises towards concluding this assessment during 2016,” the report reads.
In a related matter, a bill was introduced last year by Reps. Ed Royce (R-Calif.) and Terri Sewell (D-Ala.) to enable Fannie and Freddie to consider credit scoring models they currently don’t use when making mortgage purchase decisions. The bill has been referred to the House Financial Services Committee.