Items Tagged with 'Alternative Credit Scores'

ARTICLES

  • FHFA issues new rule effectively prohibiting Fannie and Freddie from using VantageScore

    Regulators cites conflict of interest as concern in alternative credit score proposal
    Anyone hoping that Fannie Mae and Freddie Mac may soon start using VantageScore as an alternative to their current FICO credit scoring model is about to get a cold dose of reality. The FHFA announced this week that it is issuing new rules surrounding the adoption of alternative credit scoring rules. Chief among those rules is a provision that would prohibit the GSEs from using the VantageScore credit scoring model because of conflicts of interest with the company’s backers.
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  • Watt: Shift away from FICO is among “most complicated” decisions for FHFA

    FHFA considering alternative credit scoring but it’s going to take time
    Just as he did back in August in a speech before the National Association of Real Estate Brokers’ 70th annual convention in New Orleans, Federal Housing Finance Agency Director Mel Watt told the crowd at the Mortgage Bankers Association Annual meeting in Denver not to hold their breath waiting for Fannie Mae and Freddie Mac to begin using alternative credit scoring models.
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  • VantageScore: How the FHFA can open the door to alternative credit score models

    A transition from the FICO model
    Although FHFA Director Mel Watt recently threw cold water on the idea, at some point in the future, the mortgage industry will move to using a credit scoring model other than one built by FICO prior to the recession. A push towards embracing alternative credit scoring models has gained steam in recent years, and as the discussion starts to grow, VantageScore Solutions plans to be right at the forefront of it.
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  • Senate to consider bill to end “FICO monopoly” at Fannie Mae and Freddie Mac

    Bipartisan push continues to allow GSEs to use alternative credit scoring models
    Earlier this year, a bipartisan group reintroduced a bill in the House of Representatives that would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use. Now, a companion bill is being introduced in the Senate as well, with the backing of Senators from both parties.
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  • Do you use alternative data? This is how it opens door for millions of borrowers

    Are you current with technology or still using traditional data?
    Most mortgage industry leaders have made significant changes in their processes to keep current in the past few years and credit bureaus are no exception. Lenders are seeking creative methods to evaluate potential borrowers who lack credit history, and in some cases, identify consumers who will likely soon apply for credit and reach out to them directly. Here's how credit bureaus are meeting this challenge.
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  • CFPB seeks increased lending to "credit invisible" borrowers

    Accepting input on alternative borrower-rating options
    The Consumer Financial Protection Bureau is joining the growing chorus of groups trying to expand access to credit for consumers who lack enough credit history to obtain a credit score, also known as the credit invisible. During a field hearing in Charleston, West Virginia on Thursday, CFPB Director Richard Cordray said the bureau is officially is seeking public feedback on the benefits and risks of tapping alternative data sources. Do you have any comments you want to submit?
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  • House reintroduces bill to end "FICO monopoly" at Fannie Mae and Freddie Mac

    Finally opens up the door for competition
    After a little more than a year, three representatives are reigniting the fight to allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use. If passed, the bill would finally allow competition in the government’s credit approval process.
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  • National Association of Realtors declares support for alternative credit scoring

    Says alternative models could make expand credit box
    The National Association of Realtors sent a letter to two members of Congress this week, declaring the organization's support of alternative credit-scoring models that could be used to open the credit box to previously underserved borrowers. Here's why NAR thinks alternative credit scoring is so important.
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  • From HW Magazine

    Reaching the credit invisible

    Can rethinking credit scores revolutionize lending?
    HousingWire covered the introduction of Costco into the mortgage lending space and it made the industry nervous. Lenders openly asked each other at conferences, “Who will be next? Google, Apple?” Well, that never happened. Here's the story why, in long-form feature.
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  • Urban Institute: 6 benefits to alternative credit scores

    Could help millions access lending
    Millions of previously “unscoreable” consumers are finally able to receive credit scores due to recent advances in alternative data and credit scoring methods. And thanks to these advances, industry experts found these significant positives for the housing market and future of lending.
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