The Federal Housing Finance Agency (FHFA) has started the process to allow lenders to expand their lending base to more people who might not have fit within the typical credit profile.
The FHFA is issuing a final rule to determine whether alternative credit scoring models, such as utility bill payment histories, can be used for loans guaranteed by government-sponsored enterprises (GSEs).
Read on for more details of the rule’s four-phase process for approval, plus reaction from National Association of Realtors (NAR) President John Smaby.
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