FHFA Ends Effort on Credit Scoring Overhaul
FHFA Ends Effort on Credit Scoring Overhaul July 25, 2018 The Federal Housing Finance Agency announced this week that it is suspending an initiative to update the credit score model used by government-sponsored enterprises Fannie Mae and Freddie Mac. That initiative would have potentially helped to provide millions of creditworthy Americans who have been unable to be scored with a credit score and a path toward homeownership. The FHFA, Fannie Mae, and Freddie Mac have been evaluating the impact of a new credit score model on access to credit. However, the FHFA says that it needs to instead shift its focus to the implementation of Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act that was enacted in May. The act modifies many of the changes that were made by the Dodd Frank Wall Street Reform and Consumer Protection Act. It also contains a provision that requires the FHFA to use alternative credit score models. "After careful evaluation, ...