The Federal Housing Finance Agency (FHFA) has begun seeking public input related to its implementation of updated credit score requirements. Specifically, the agency requested suggestions on the proposed milestones for Freddie Mac and Fannie Mae (the Enterprises) as they transition from the Classic FICO credit score model to the FICO 10T and the VantageScore 4.0 score models and from requiring three credit reports to requiring two for single-family loan acquisitions.
“Today’s announcement highlights FHFA’s commitment to stakeholder engagement as the Enterprises implement the new credit score models and transition to a bi-merge reporting requirement,” FHFA Director Sandra Thompson said in a release. “Obtaining public input in a transparent manner and considering the feedback is critical to a successful transition.”
Currently, the agency expects the bi-merge credit implementation to occur by the first quarter of 2024, it stated, with the new credit score models to be implemented in two phases in 2024 and 2025. The first phase is slotted to begin in the third quarter of 2024 and will include delivery and disclosure of the additional credit scores. The second should occur in the fourth quarter of 2025, to include the incorporation of the new credit score models into pricing, capital, and other processes.
FHFA stated it and the Enterprises will work to ensure a smooth transition that minimizes complexity and avoids unnecessary costs.
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