Monday, December 5, 2022
HomeSubject AreaPolitical AdvocacyFHFA Publicizes Framework to Undertake New FICO and VantageScore Scores

FHFA Publicizes Framework to Undertake New FICO and VantageScore Scores


The FHFA introduced that it’s going to implement a framework for adopting two new credit score scoring fashions by Fannie Mae and Freddie Mac. The framework will seemingly take a number of years to totally implement.

Fannie Mae and Freddie Mac have relied on “Traditional” FICO for 20 years, however the mannequin is predicated on modeling methods from the Nineties and restricted knowledge.

The brand new scores, FICO 10T and VantageScore v4, utilized present modeling methods and knowledge reminiscent of rents, utilities, and telecom. NAR has advocated for the adoption of latest scores lately to spur competitors and enhancements and for the adoption of other credit score knowledge like hire for practically three many years.

This variation will permit considerably extra residence patrons to be credit score scorable and assist construct the ladder to residence possession for below served teams.



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