The Federal Housing Finance Agency said it will hold stakeholder forums and listening sessions in the coming weeks on its plans to transition Fannie Mae and Freddie Mac to new credit score models.
Latest Announcement: The FHFA said:
The stakeholder sessions will allow for discussions of the new requirements, including potential refinements to the adoption timeline.
Interested parties who wish to participate in this process should send their name, affiliation, and contact information to [email protected] by Monday, Sept. 25.
It expects to provide further details to participants and to hold initial sessions in the coming weeks.
Recent FHFA Letter: The FHFA last month said it is considering adjustments to its transition plan following outreach from ICBA and other groups representing the mortgage industry. In a letter to the organizations, the agency said it is considering adjustments to the proposed timeline, understands the need for data to support stakeholder analysis of the impacts of the new credit score models, and is developing several mechanisms to ensure robust stakeholder engagement.
Industry Concerns: In a previous letter, the groups:
Expressed concerns with the FHFA plan to replace the Classic FICO credit score model with FICO 10T and VantageScore 4.0.
Said the implementation timeline and plan lack data and transparency and fail to address the far-reaching effects of the proposed policy changes.
Called for stakeholder engagement, robust data transparency, and a recalibrated timeline.
Previous ICBA Comments: ICBA has strongly opposed the mandatory use of multiple scores in comments to the FHFA and during the agency’s listening session on this initiative. ICBA has previously cited the potential cost for smaller lenders of implementing the changes and said they might be more costly than they’re worth, especially for community banks.
