Removing Barriers Blog

FHFA Announces Validation of Classic FICO for Use by Fannie Mae and Freddie Mac
Posted November 10, 2020 by CUNA Advocacy

The FHFA announced the validation and approval of the Classic FICO credit score model for use the Enterprises. The validation and approval of Classic FICO by the Enterprises allows them to continue supporting the mortgage market while assessing more modern credit score models.

CUNA weighed in on the FHFA’s 2018 request for comment regarding use of several credit score models by the Enterprises. In our letter, we stressed the importance that the FHFA work to find the right balance between safety and soundness on the one hand, and credit availability for American consumers on the other. Having a housing finance market that provides liquidity throughout the country requires strong participation by a wide range of lenders, including small lenders and lenders serving rural areas. Qualified financial institutions and creditworthy eligible borrowers should have fair and equitable access to the financial services offered by the Enterprises.