WASHINGTON (August 14, 2018) – National Association of Realtors® President John Smaby issued the following statement after the Federal Housing Finance Agency this week sent a final rule on the validation and approval of third-party credit score model(s) that can be used by Fannie Mae and Freddie Mac for publication
“A borrower’s credit score unlocks mortgage financing through the GSEs, a critical gateway for millions of homebuyers,” Smaby, a second generation Realtor® from Edina, Minnesota, said. “However, the credit score currently used by Fannie Mae and Freddie Mac is nearly two decades old, ignoring innovations in modeling and overlooking a wealth of non-traditional information about potential homebuyers.
“Realtors® applaud these FHFA efforts to foster competition and innovation in credit modeling, creating a path for new models that will open homeownership opportunities for countless responsible, creditworthy Americans.”
The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.