On Tuesday (8/12/19) the Federal Housing Finance Agency (FHFA) promulgated a final rule which addresses credit score competition in the mortgage market. The new rule permits all model developers to participate in an application process whereby new credit score models will be assessed by Fannie Mae and Freddie Mac across a number of different parameters such as predictiveness, inclusivity and other potential markers. On Thursday (8/22/19),CNBC interviewed VantageScore President and CEO Barrett Burns regarding the FHFA’s reversal of its previously unfavorable (to VantageScore) rule on credit score competition for Fannie and Freddie Mac.     Watch CNBC Live:  …Continue Reading

By Andrew Ackerman Aug. 13, 2019 2:02 pm ET (WALL STREET JOURNAL ONLINE VERSION) WASHINGTON—One firm’s dominance over the credit scores used to vet many U.S. mortgages is getting a shake-up. Fannie Mae FNMA +3.56% and Freddie Mac , two mortgage-finance firms that back nearly half of U.S. mortgages, will have to consider credit-score alternatives to Fair Isaac Corp.FICO -1.65% ’s FICO score when determining a mortgage applicant’s creditworthiness, under a new rule completed on Tuesday by the mortgage-finance giants’ federal overseer. The move by the Federal Housing Finance Agency is seen as a win for VantageScore, a credit-score system by VantageScore Solutions LLC, which is owned by the three large credit-reporting…Continue Reading

LISTEN TO THE NPR STORY HERE. A new rule from the Federal Housing Finance Agency – which oversees Fannie Mae and Freddie Mac – is requiring those two mortgage financing companies to consider alternatives to FICO when figuring out if borrowers qualify for a loan and at what rate. The idea being that this may help some borrowers to qualify who might not otherwise. In particular, it could mean more use of a FICO competitor – called VantageScore – which uses slightly different criteria and tries to assess creditworthiness of people who may have more limited credit histories….Continue Reading