Scott Applauds FHFA Efforts to Responsibly Expand Homeownership to More Americans
WASHINGTON – U.S. Senator Tim Scott (R-S.C.) released a statement on this week’s announcement by Federal Housing Finance Agency (FHFA) Director Sandra Thompson that the Agency validated and approved both FICO 10T and VantageScore 4.0 for use by Fannie Mae and Freddie Mac (the GSEs) and will eventually require lenders to deliver both credit scores with each loan sold to the GSEs.
“A lot has changed about the world in the two decades since the GSEs’ accepted scoring model was last updated – including tremendous technical advancements in credit modeling technology and significant changes to consumer consumption trends – and this announcement marks an important step in helping make our country’s housing system more fair for everyone without lowering the bar for qualification,” said Senator Scott. “Homeownership is a central part of the American Dream, and I am optimistic that the changes outlined by FHFA today will responsibly assist millions of hardworking, qualified, and creditworthy people across the country to accomplish that goal.”
In 2017, Sen. Scott partnered with Senator Mark Warner (R-Va.) to introduce the Credit Score Competition Act, which directed the FHFA to create a process by which credit scoring models can be validated and approved for use by the GSEs when they purchase mortgages.
The bill was ultimately part of the bipartisan financial regulatory tailoring package, S. 2155 — the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was signed into law in May 2018. FHFA began efforts to implement Sen. Scott’s legislation shortly afterward.
Read more about Senator Scott’s work to level the homeownership playing field for creditworthy Americans here.