FHFA: Fannie Mae to include rental payment history in risk assessment, underwriting calculations
The FHFA announced Wednesday that Fannie Mae will now consider rental payment history in its risk assessment processes and underwriting decision.
"For many households, rent is the single largest monthly expense," wrote FHFA Acting Director Sandra Thompson in the announcement. "There is absolutely no reason timely payment of monthly housing expenses shouldn't be included in underwriting calculations."
NAFCU has previously advocated for the use of alternative credit score models to ensure creditworthy borrowers – who have previously been marginalized for lack of traditional credit history and other issues – have access to affordable credit.
The association will continue to work with the FHFA and advocate for policies that do not create additional burdens on credit unions and expand access to credit for those who are unbanked or underbanked.
Spring 2022 Supervisory Highlights Part II: Mortgage Origination, Prepaid Accounts, Remittances, and Student Loan Servicing
Examination & Enforcement
Add to Calendar 2022-05-16 09:00:00 2022-05-16 09:00:00 Managing Fraud at Credit Unions in an Increasingly Digital World To remain competitive, credit unions are increasingly adopting digital offerings. However, digital growth can lead to increased application fraud. Legacy systems primarily intended to ensure compliance with Know Your Customer (KYC) and Customer Identification Programs are no longer effective. With so much personally identifiable information available, both real and synthetic, newer and more dynamic technologies are required to stop fraud. What’s at stake: The ability to keep up with banks and fintechs increasingly able to provide a seamless digital onboarding experience and access to new products and money right away. Getting it wrong not only means higher losses, but reduced growth in the long term. In the face of this increasingly digital world, it’s not realistic to manually review everything. Newer types of fraud such as synthetic identities often go undetected and can account for up to 10% of chargeoffs. Evaluating the identities of potential new members at onboarding has to be done in an automated fashion using technology that includes phone and email intelligence, as well as other signals to flag high risk applications so they can be more fully vetted. Understanding how to incorporate new technology at account opening and knowing what verification strategies to pursue when you suspect fraud can help credit unions ensure predictable growth with minimal losses. Get the Report: Location NAFCU email@example.com America/New_York public
Fraud, Current Affairs, Credit Unions, Compliance, Risk Management
Get daily updates.
Subscribe to NAFCU today.