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Credit Reporting Firms Win in New Rules for Mortgage Scores

Aug. 13, 2019, 8:01 PM

Fannie Mae and Freddie Mac will be required to consider an alternative score created by the three leading credit reporting agencies under new rules published by the Federal Housing Finance Agency Aug. 13.

The rule creates a four-phase process for the mortgage giants to validate and approve third-party credit scoring models, judging them on “accuracy, reliability and integrity,” FHFA said in a fact sheet posted on its website. The final rule scraps a component that would not have allowed the use of VantageScore, a system created by Equifax Inc., TransUnion and Experian PLC as alternatives to the long-dominant FICO score ...