Experian, Equifax & TransUnion want to sell you new mortgage credit scores

This is a syndicated repost courtesy of theinstitutionalriskanalyst. To view original, click here. Reposted with permission.
Some of the housing industry’s largest trade groups reportedly want housing finance agencies Fannie Mae and Freddie Mac to look at using new types of credit scores for assessing default risk on residential mortgages. These groups argue that existing scores are ‘unfair’ to low income borrowers.
Housing Wire reported last month that the groups sent a letter to Federal Housing Finance Agency Director Mel Watt, the Mortgage Bankers Association, National Association of Realtors, the National Association of Home Builders, and other groups pressing Watt on the issue.
Watt, a former congressman from North Carolina and long-time member of the House Financial Services Committee, threw cold water on the idea that Fannie and Freddie would begin using alternative credit scoring models at any point in the next two years.
‘Watt said that making any changes to the government-sponsored enterprises’ credit scoring models before 2019 would be a ‘serious mistake,’ reports HW. Ditto.

This post was published at Wall Street Examiner on September 18, 2017.