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Advantage Credit Responds to FHFA Request For Information on Credit Scores

At Advantage Credit, we’ve always taken an active role in trying to shape regulation and policy that help produce sound credit underwriting decisions that will benefit both lenders and consumers. To that end, the Federal Housing Financial Agency (FHFA) announced a Request For Input (RFI) seeking feedback from interested parties regarding how Fannie Mae and Freddie Mac (the GSEs) should update their current credit score requirements. Specifically, the GSEs plan to stop using the Classic FICO credit score model and to replace it with one of four options. These options include (i) requiring the use of either the FICO 9 credit score model or the VantageScore 3.0 credit score model; (ii) requiring the use of both the FICO 9 and the VantageScore 3.0 credit score models; (iii) allowing lenders to choose between either the FICO 9 or the VantageScore 3.0 credit score models; or (iv) allowing lenders to deliver multiple scores through a waterfall approach that would establish a primary and a secondary score. The FHFA’s RFI asked interested parties to provide feedback on these options by responding to 22 questions outlined in the RFI by February 20 but the deadline has been extended to March 31.

Advantage Credit’s response to the RFI has been submitted and can be viewed on our website HERE.  All submissions can be viewed on the FHFA website at Credit Score RFI.

We appreciate any feedback you may have for us and also encourage your organization to provide its input to FHFA on this issue.  Together, we can ensure all parties in the mortgage process, from origination to secondary market, are well served.

Thank you.

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