Although industry stakeholders look forward to the rental payment data and cash flow underwriting capabilities of VantageScore 4.0, most expect the transition to take a while.
A rare wave of bipartisanship swept through Congress last week, propelling a key piece of housing legislation through the Senate Banking Committee. And there are separate proposals in the House.
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.
Starting in October, properties that are part of a condo project in insolvency proceedings will not be eligible for GSE loans. The rule applies immediately if the lender is already aware of the proceedings.