GSE Scorecard Includes Review of Alternative Credit Assessment
December 22, 2016
Fannie Mae and Freddie Mac are expected to closely examine the mortgage servicing business model and wrap up their analysis of alternative credit scoring options in 2017, according to the Federal Housing Finance Agency’s “scorecard” for the GSEs, which outlines specific priorities for the duo.Access to credit has been a much-debated topic of late, and many have called for the GSEs to explore alternative models to the traditional FICO scoring system. Industry insiders argue that the GSE credit profile has remained elevated even though there’s been a significant drop in seller repurchase risk and the housing market has recovered. Under its goals of increasing access to credit, which include access for underserved...