![]() ![]() The timeline was designed to elicit stakeholder feedback on various elements of the implementation of both the new credit score models and the updated credit report requirements. FHFA and the Enterprises reiterated their commitment to working with stakeholders to ensure a smooth transition to the new credit scores and the new credit report requirements, in a manner that avoids unnecessary costs and complexity.Īs part of the March announcement, FHFA and the Enterprises released a proposed timeline with a staged implementation to ease the transition complexity for stakeholders. 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.įHFA provided an update on the Enterprises’ implementation plans and opportunities for stakeholder engagement. FHFA expects this update will promote competition in the market while maintaining the information needed to support robust risk management. On October 24, 2022, FHFA also announced that 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. Both of the newly approved models exceeded the required thresholds for accuracy, reliability, and integrity. During this time, the Enterprises undertook rigorous testing of the models for which an application was received. The announcement followed a lengthy process of reviewing potential updates to the Enterprises’ credit score requirements, as required by statute and regulation. Once implemented, lenders will be required to deliver both FICO 10T and VantageScore 4.0 credit scores, when available, with each single-family loan sold to the Enterprises. Interested parties who wish to participate in this process should send their name, affiliation, and contact information BackgroundįHFA announced the validation and approval of two new credit score models, FICO 10T and VantageScore 4.0, for use by the Enterprises. This engagement, which will include stakeholder forums and listening sessions, will allow for identification of a wide variety of issues, opportunities, and challenges related to successful implementation of the new requirements, including potential refinements to the timeline for adoption. FHFA expects that implementation will be a multiyear effort.įHFA announced the next phase of ongoing public engagement for the updated Enterprise credit score requirements. ![]() FHFA and the Enterprises are currently implementing key updates to the Enterprises’ credit score model requirements. This process is governed by the 2018 enactment of the Economic Growth, Regulatory Relief and Consumer Protection Act (Section 310) and the Validation and Approval of Credit Score Models Rule (12 CFR Part 1254), and is consistent with FHFA’s commitment to accuracy and inclusivity in credit scoring, as well as the safety and soundness of the Enterprises. ![]() FHFA, along with Fannie Mae and Freddie Mac (the Enterprises), is committed to regularly assessing and modernizing the credit score models used by mortgage lenders and other stakeholders in the housing finance system. ![]()
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