Posted To: MND NewsWire

Tried and true has won out over shiny and new, at least when it comes to GSE credit scoring. And at least for the moment. The Federal Housing Finance Agency (FHFA) announced on Tuesday that it has validated and reapproved the Classic FICO credit score model for use by Fannie Mae and Freddie Mac for assessing the creditworthiness of mortgage borrowers. The Agency said this would allow the GSEs “to continue supporting the mortgage market while assessing more modern credit score models that were submitted in response to the 2020 Joint Enterprise Credit Score Solicitation.” That solicitation was issued jointly by the GSEs In February. They were seeking possible alternatives to the model which has, for years, been the only credit score they accepted. The major credit agencies, Equifax, TransUnion…(read more)

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Source: Mortgage News Daily