The trade group urged Fannie and Freddie to modernize their construction-to-permanent loan products to expand access to affordable housing and encourage more lenders to participate in these projects.
Just one week after VantageScore 4.0 credit score was allowed for underwriting GSE-eligible loans, competitor FICO released data appearing to show that FICO 10 T has superior predictive capabilities.
The GSEs’ automated underwriting systems now include income calculators, appraisal waivers and tools to assess the rental payment history of borrowers.
By one estimate, if Fannie’s title acceptance pilot were allowed to expand, it could save consumers as much as $96 million a year without significantly increasing the risk of title defects.