FHFA Seeks Comment on Third-Party Credit Score Models

Dec 13, 2018

The City of Los Angeles suffered a legal setback when a three-judge panel of the U.S. 9th Circuit Court of Appeals ruled that the city failed to make a case against alleged mortgage lending discrimination

The Federal Housing Finance Agency (FHFA) is seeking public comment on a proposed rule to establish standards and criteria for the validation and approval of third-party credit score models that would be used by the government-sponsored enterprises (GSEs).

The proposed rule would establish a four-phase process for Fannie Mae and Freddie Mac to validate and approve credit score models: Solicitation of applications from credit score model developers, review of submitted applications, credit score assessment and enterprise business assessment. The GSEs are not required to use a third-party credit score model, but using this type of a model would require GSE approval based on the federal law and FHFA regulations.

The FHFA is also hosting a webinar on Jan. 9 at 1:00 p.m. EST to explain the proposed rule and answer questions regarding its contents.

About the author

Phil Hall

Link copied

Published

Dec 13, 2018

Military Lending

Repeat Buyers Make Up Nearly 60% Of VA Purchase Business

VA's latest reminder about reusable benefits highlights an opportunity for originators to revisit past clients — and understand the rules around remaining entitlement

Veterans who have already used their VA home loan benefit aren't a niche segment of the VA purchase market. They're the majority.Nearly 60% of VA purchase loans in the latest full fiscal-year data went to previous homebuyers, a figure that takes on new relevance after the De...

Wholesale

UWM Combines Processing And Underwriting In Push For Faster Closings

Underwriting+ combines processing, underwriting, and borrower communication, with UWM reporting an 8.3-day average from submission to clear-to-close during its pilot

United Wholesale Mortgage is expanding the role of its underwriters, putting them in charge of work that traditionally moves among processors, underwriters, and other operations staff.UWM on Wednesday launched Underwriting+, a new program that assigns an underwriter to not o...

Nov

Pasadena, CA

More from

Regulation and Compliance

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

ACES Targets Loans Traditional QC Samples May Miss

New population-testing technology applies lender-defined rules across selected origination and servicing records, then directs flagged files to human reviewers

Tech

Sep 21, 2026

The Risk Your Credit Score Can't See

Place-based market risk can produce dramatically different default outcomes among borrowers with nearly identical credit profiles

Opinion

Sep 17, 2026

Trump Taps FHA Insider Matt Jones To Lead Agency

The former MBA policy executive would oversee FHA underwriting, servicing, and credit-score changes that directly affect lenders and borrowers

Regulation and Compliance

Sep 16, 2026

Regulators Propose Risk-Based Vendor Oversight For Community Lenders

Plan could ease reviews of lower-risk mortgage technology while preserving lender responsibility for vendor failures