Lawmakers Urge FHFA to Eliminate FICO Requirement in Seller/Servicer Guidelines

January 17, 2014 
mortgage lending news
The Federal Housing Finance Agency is under pressure from legislators to strike a requirement from Fannie Mae and Freddie Mac's seller/servicer guidelines that underwriting be performed with a FICO credit score.

A letter to the regulator from Reps. Spencer Bachus (R-Ala.), Jim Himes (D-Conn.), Carolyn Maloney (D-N.Y.), and Ed Royce (R-Calif.) said the rule blocks other credit score providers from the mortgage market, which will become an even bigger issue under the new qualified mortgage (QM) and qualified residential mortgage (QRM) standards. Refusing to consider scores from other competitors in the field, the lawmakers wrote in the letter dated Jan. 9, "risks harming consumers by stifling innovation, increasing prices and reducing the predictiveness of credit scores."

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.