Fannie Mae (FNMA)

[Mikey Mike]

08/04/2017 | Press release | Distributed by Public on 08/04/2017 14:16

FHFA Says No Change In GSE Credit Scoring Models Until 2019

In a speech August , 2017 at the National Association of Real Estate Brokers' 70th annual convention, Federal Housing Finance Agency Director Mel Watt explained there will be no change in the credit scoring system before mid-2019.

Watt explained the FHFA continues to research options for an alternative credit scoring model, however several new factors came up about competition in the credit score market.

Watt said more work also needs to be done on the operational impacts of the industry, and stressed that this task has been one of the most difficult evaluations undertaken during his tenure as director of the FHFA.

He said the FHFA will issue a request for industry input this Fall in order to get more information about the impact of alternative credit scoring models.

So far this year, Watt explained Fannie Mae and Freddie Mac have put forth several changes which help ease access to credit such as the changes to student loan debt in April. The GSEs will continue to bring forth further change throughout this year to continue easing access to credit.

Currently, the Senate is considering a bill that would direct the FHFA to create a process that would allow alternative credit scoring models to be validated and approved by the GSEs when they purchase mortgage.

http://www.publicnow.com/view/D9D79120F86687ECFD4800FD90FF16EF8D90B165?2017-08-04-22:00:08+01:00-xxx114