Fannie and Freddie Have Yet to Change Scoring System for Mortgage Applicants
Washington Post, Nov. 30, 2016–Harney, Kenneth R.
The two behemoths of the mortgage business–Fannie Mae and Freddie Mac–continue to use a credit-scoring model that even its developer, FICO, says is not as “predictive” as its much newer models. Michael Fratantoni, chief economist for the Mortgage Bankers Association, said “by sticking to old models we are disadvantaging” sizable numbers of consumers.
