The Federal Housing Finance Agency (FHFA) announced additional opportunities for ongoing public engagement to facilitate the transition to updated credit score models and credit report requirements for loans acquired by Fannie Mae and Freddie Mac (the Enterprises).
This engagement will include stakeholder forums and listening sessions and is designed to identify issues, opportunities, and challenges related to successful implementation of the new requirements, including potential refinements to the timeline for adoption, according to FHFA.
CUNA and other trade organizations requested FHFA offer additional engagement opportunities in the credit score implementation process.
FHFA announced the validation and approval of both the FICO 10T and VantageScore 4.0 credit score models for use by the Enterprises in October 2022.
The announcement followed a lengthy process of reviewing potential updates to the Enterprises’ credit score requirements, as required by statute and regulation. During this time, the Enterprises undertook rigorous testing of the models for which an application was received.
Both of the newly approved models exceed the required thresholds for accuracy, reliability, and integrity. Following an extensive implementation process, the Enterprises will require scores from both models, when available, on all single-family loans they acquire.
FHFA also announced in October 2022 the Enterprises would transition from a tri-merge requirement, in which credit reports are required from all three nationwide consumer reporting agencies, to a bi-merge requirement, in which credit reports are required from at least two of these agencies.
FHFA further expects that the implementation date for this bi-merge requirement will occur later than the first quarter of 2024, as was initially proposed.
CUNA has urged FHFA to reformulate the proposed timeline to provide sufficient time and an adaptable structure that will permit stakeholder feedback.
Credit union representatives that wish to participate in the public forums and listening sessions should email CreditScores@fhfa.gov by Sept. 25 with their name, affiliation, and contact information.