WASHINGTON (October 25, 2022) – National Association of Realtors® President Leslie Rouda Smith issued the following statement after the Federal Housing Finance Agency (FHFA) announced the validation and approval of both the FICO 10T credit score model and the VantageScore 4.0 credit score model for use by Fannie Mae and Freddie Mac (the Enterprises):

"NAR commends FHFA for announcing their transition from using Classic FICO to allowing Fannie and Freddie to use newer versions of FICO and Vantage," said Rouda Smith. "NAR has advocated for the use of newer credit scores for years as a means of fostering competition, innovation and access, and we are pleased that FHFA has taken the first step to making this change. There is a long road ahead to implement this change, but it will ultimately create a more accurate gauge on a buyer’s ability to purchase a home by including alternative credit data."

FHFA expects the implementation of the new credit score models will be a multiyear effort. The Enterprises have been relying on the Classic FICO as its means to measure a buyer’s worthiness for loan approval for over 20 years. The new models will increase the accuracy of a person’s credit score by also capturing new payment histories for borrowers when available, such as rent, utilities, and telecom payments. NAR has advocated for the use of rent, utilities, and telecom payments for nearly three decades.

The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

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