On June 13, 2016, NAR sent a letter of support to Reps. Royce (R-CA) and Sewell (D-AL) for introducing H.R. 4211, the “Credit Score Competition Act of 2015.” The legislation would help many families achieve homeownership by instructing Fannie Mae and Freddie Mac to update their requirements so that lenders might be able to use other credit scoring models that are empirically derived and both demonstrably and statistically sound. Fannie Mae and Freddie Mac are the largest mortgage purchasers in the nation, but they rely on credit score models that don’t necessarily take into account something as simple as whether borrowers have paid their rent or utility bills on time.
Additionally, on June 2, 2016, NAR issued a letter of support for H.R. 4172, the “Credit Access and Inclusion Act of 2015,” introduced by Reps. Ellison (D-MN) and Fitzpatrick (R-PA). NAR also issued a support letter for the Senate companion bill, S. 2355, the “Credit Access and Inclusion Act of 2015,” which was introduced by Sens. Kirk (R-IL) and Manchin (D-WV). Both pieces of legislation will help consumers achieve the American Dream by amending the Federal Fair Credit Reporting Act to allow providers like gas, electric and telecommunication companies to report consumers’ payment histories to credit reporting agencies. As a result, minority, rural and potential first-time homebuyers would be able to access affordable and responsible financial products and services to build wealth.
Read NAR's Congressional Letters: