U.S. Federal Housing (Federal Housing Finance Agency, FHFA), along with Fannie Mae and Freddie Mac (the Enterprises), is committed to regularly assessing and modernizing the credit score models used by mortgage lenders and other stakeholders in the housing finance system. This process is governed by the 2018 enactment of the Economic Growth, Regulatory Relief and Consumer Protection Act (Section 310) and the Validation and Approval of Credit Score Models Rule (12 CFR Part 1254), and is consistent with FHFA’s commitment to accuracy in credit scoring, as well as the safety and soundness of the Enterprises.
Recent Updates
U.S. Federal Housing is updating the implementation of newer, more advanced credit score models by the Enterprises. The Enterprises are moving forward with an interim phase in this initiative, in which they will permit approved lenders to deliver mortgage loans using a credit score generated by either the Classic FICO model or the VantageScore 4.0 model. This interim approach will introduce more robust competition in credit scoring while the Enterprises continue to work towards full implementation of modernized credit scoring and credit reporting.
Please see below for Frequently Asked Questions (FAQs) about the interim phase of the initiative. These FAQs will be updated regularly.
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