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Fannie Mae And Freddie Mac Now Permitted To Use Classic FICO Model

Navi Persaud
Nov 10, 2020
FHFA headquarters

The Federal Housing Finance Agency approved the use of the Classic FICO credit score model for Fannie Mae and Freddie Mac. The validation and approval of Classic FICO by the GSEs allows them to continue supporting the mortgage market while assessing more modern credit score models that were submitted in response to the 2020 Joint Enterprise Credit Score Solicitation​.

The FHFA expects it will take the Fannie and Freddie an additional year to complete the validation and approval process of the remaining credit score models submitted in response to the solicitation.

The validation and approval of the Classic FICO credit score model is an incremental step in meeting the requirements outlined in Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which stipulated a November 20, 2020 deadline for the Enterprises to use a validated and approved credit score model, according to the FHFA.

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