Fannie, Freddie Credit Score and Credit Report Requirements to Change | PC Weiner Brodsky Kider

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the GSEs) will eventually require two credit scores for each loan, and announced a future change to the tri-merger credit report requirement. The transition to these new planned requirements is not immediate and may take several years.

Credit scores

The FHFA announced that it has validated and approved the FICO 10T and VantageScore 4.0 models for GSEs. Once fully implemented, GSEs will require both a FICO 10T credit score and VantageScore 4.0 instead of the traditional FICO score. This change is expected to increase the accuracy of borrowers’ credit scores, allow for more equitable and inclusive access to mortgage credit by increasing the variety of credit history sources (i.e. utility and mobile phones) and increase the strength of the housing market.

Credit reports

In addition, the FHFA has announced its intention that GSEs in the future will only require two credit reports from consumer reporting agencies, instead of the current requirement of three credit reports – Equifax, Experian and Trans Union. FHFA expects this change to reduce costs and increase innovation in the industry.

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