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February 08, 2017
NAFCU, trades seek engagement with FHFA on credit score models
NAFCU and seven other financial trades on Wednesday urged the Federal Housing Finance Agency to engage with industry stakeholders before moving forward with new or alternative government-sponsored enterprise credit score models.
Noting the FHFA's 2017 instructions for the GSEs to "conclude assessment" of the updated or alternative models, the trades requested additional consultation on the potential options before the assessment is completed. They also urged an implementation period of at least 24 months once the models are approved.
"While some companies in our industries have received presentations by various credit score providers on possible impacts to mortgage credit availability for consumers, there is often competing information, and not all our organizations have been privy to these presentations," the trades wrote.
"We would request that FHFA work with industry more broadly as it considers new/updated scoring criteria, and propose a joint meeting with our organizations where we will have the opportunity to learn more about the various options," the letter continued.
The trades emphasized the "significant implications" new or alternative models could have on borrowers and the financial industry.
Other signers included the American Bankers Association, the Community Home Lenders Association, the Community Mortgage Lenders of America, CUNA, the Housing Policy Council of the Financial Services Roundtable, the Independent Community Bankers of America and U.S. Mortgage Insurers.
Noting the FHFA's 2017 instructions for the GSEs to "conclude assessment" of the updated or alternative models, the trades requested additional consultation on the potential options before the assessment is completed. They also urged an implementation period of at least 24 months once the models are approved.
"While some companies in our industries have received presentations by various credit score providers on possible impacts to mortgage credit availability for consumers, there is often competing information, and not all our organizations have been privy to these presentations," the trades wrote.
"We would request that FHFA work with industry more broadly as it considers new/updated scoring criteria, and propose a joint meeting with our organizations where we will have the opportunity to learn more about the various options," the letter continued.
The trades emphasized the "significant implications" new or alternative models could have on borrowers and the financial industry.
Other signers included the American Bankers Association, the Community Home Lenders Association, the Community Mortgage Lenders of America, CUNA, the Housing Policy Council of the Financial Services Roundtable, the Independent Community Bankers of America and U.S. Mortgage Insurers.
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