FHFA Issues Request for Input on Fannie Mae/Freddie Mac Credit Score Requirements

The Federal Housing Finance Agency yesterday issued a Request for Input to obtain feedback about operational and competition considerations of changing Fannie Mae and Freddie Mac’s current credit score requirements.

Credit scores under evaluation by FHFA and the government-sponsored enterprises are Classic FICO, FICO 9 and VantageScore 3.0. The RFI can be accessed at https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/CreditScore_RFI-2017.pdf.

Fannie Mae and Freddie Mac currently use Classic FICO for product eligibility, loan pricing and financial disclosure purposes. Recently, they implemented changes that allow their automated underwriting systems to evaluate borrowers who do not have a Classic FICO credit score.

“In issuing this RFI, FHFA hopes to obtain honest and reliable information and stakeholder feedback on the operational and competition aspects of changing Fannie Mae and Freddie Mac’s credit score requirements,” said FHFA Director Melvin Watt. “Responses to the RFI will provide important details on the complexities of this decision, which is why I encourage stakeholders to respond in the most meaningful way possible.”

The RFI provides background information about how credit scores are used by the GSEs and the mortgage industry; about the credit score models that FHFA and the GSEs are evaluating; and about the credit score model options under consideration by FHFA. The RFI also provides a discussion of operational and competition considerations in making a decision about the GSEs’ credit score requirements.

Input to the RFI are due Feb. 20.