Fannie Mae (USOTC:FNMA)
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2 Months : From Jul 2019 to Sep 2019
By Andrew Ackerman
WASHINGTON -- One firm's dominance over the credit scores used to vet many U.S. mortgages is getting a shake-up.
Fannie Mae and Freddie Mac, two mortgage-finance firms that back nearly half of U.S. mortgages, will have to consider credit-score alternatives to Fair Isaac Corp.'s FICO score when determining a mortgage applicant's creditworthiness, under a new rule completed on Tuesday by the mortgage-finance giants' federal overseer.
The move by the Federal Housing Finance Agency is seen as a win for VantageScore, a credit-score system by VantageScore Solutions LLC, which is owned by the three large credit-reporting firms: Equifax Inc., TransUnion and Experian PLC.
Tuesday's rule sets up a four-phase process for Fannie and Freddie to validate and approve credit score models. The measure is required by a regulatory rollback signed into law last year.
AnnaMaria Andriotis contributed to this article.
(END) Dow Jones Newswires
August 13, 2019 14:27 ET (18:27 GMT)
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