New, Alternative GSE Credit-Scoring Models Would Get a Boost From Bill Under Consideration in House
September 29, 2016
Mortgage lenders would be able to extend more credit to traditionally underserved borrowers with greater confidence and sell those loans to Fannie Mae and Freddie Mac, according to proponents of legislation pending on Capitol Hill. H.R. 4211, the “Credit Score Competition Act of 2015,” introduced by Rep. Ed Royce, R-CA, would allow Fannie and Freddie to consider alternative scoring models when determining whether to purchase a residential mortgage. Further, the Federal Housing Finance Agency would be given...