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Policy Page
Credit Scores

FHFA, along with Fannie Mae and Freddie Mac (the Enterprises), is committed to regularly assessing and modernizing the credit score models used by mortgage lenders and other stakeholders in the housing finance system. This process is governed by the 2018 enactment of the Economic Growth, Regulatory Relief and Consumer Protection Act (Section 310) and the Validation and Approval of Credit Score Models Rule (12 CFR Part 1254), and is consistent with FHFA’s commitment to accuracy and inclusivity in credit scoring, as well as the safety and soundness of the Enterprises. FHFA and the Enterprises are currently implementing key updates to the Enterprises’ credit score model requirements. FHFA expects this implementation will be a multiyear effort.

Recent Updates

On February 29, 2024, FHFA announced several updates related to the implementation of the updated Enterprise credit score requirements. Following extensive stakeholder input, FHFA amended the proposed implementation timeline to align the implementation of the bi-merge credit reporting requirement with the transition from the Classic FICO model. To better support market participants as they engage in this transition, FHFA further announced that the Enterprises would accelerate the publication of historical data specific to the VantageScore 4.0 model to early in the third quarter of 2024, while continuing to work towards publication of similar data to support the transition to the FICO 10T model.

Background

On October 24, 2022, FHFA announced the validation and approval of two new credit score models, FICO 10T and VantageScore 4.0, for use by the Enterprises. Once implemented, lenders will be required to deliver both FICO 10T and VantageScore 4.0 credit scores, when available, with each single-family loan sold to the Enterprises. The announcement followed a lengthy process of reviewing potential updates to the Enterprises’ credit score requirements, as required by statute and regulation. During this time, the Enterprises undertook rigorous testing of the models for which an application was received. Both of the newly approved models exceeded the required thresholds for accuracy, reliability, and integrity.

On October 24, 2022, FHFA also announced that the Enterprises would transition from a tri-merge credit reporting requirement, in which credit reports are required from all three nationwide consumer reporting agencies, to a bi-merge requirement, in which credit reports are required from at least two of these agencies. FHFA expects this update will promote competition in the market while supporting robust risk management.

On March 23, 2023, FHFA provided an update on the Enterprises’ implementation plans and opportunities for stakeholder engagement. FHFA and the Enterprises reiterated their commitment to working with stakeholders to ensure a smooth transition to the new credit scores and the new credit reporting requirements, in a manner that avoids unnecessary costs and complexity. 

As part of the March announcement, FHFA and the Enterprises released a proposed timeline that was designed to elicit stakeholder feedback on various elements of the implementation of both the new credit score models and the updated credit reporting requirements. Additionally, the Enterprises conducted extensive outreach to stakeholders in the form of targeted discussions with a variety of market participants and engagement in industry conferences and webinars, as well as through a stakeholder survey, which generated nearly one thousand responses. Many of the themes identified by respondents included perspectives on the proposed timeline, the need for data to perform analysis of the new models and requirements, the importance of federal agency coordination, and views about mechanisms for FHFA and the Enterprises to receive feedback.

On September 11, 2023, FHFA announced the next phase of ongoing public engagement for the updated Enterprise credit score requirements. This engagement includes stakeholder forums and serves to identify a wide variety of issues, opportunities, and challenges related to successful implementation of the new requirements, including potential refinements to the timeline for adoption. Initial stakeholder forums were convened in the fourth quarter of 2023 and addressed Uses of Historical Data for Stakeholder Analysis and Sequencing of Project Milestones. Interested parties who wish to participate in this process should send their name, affiliation, and contact information to CreditScores@fhfa.gov.

Fannie Mae Credit Sc​ore Transition Page​

Freddie Mac Credit Score Transition Page​

Resources


Public Engagement Process for Implementation of Credit Score Requirements

News Release: FHFA Announces Key Updates for Implementation of Enterprise Credit Score Requirements (2/29/2024)

News Release: FHFA Announces Next Phase of Public Engagement Process for Updated Credit Score Requirements (9/11/2023)

News Release: FHFA Announces Public Engagement Process for Implementation of Updated Credit Score Requirements (3/23/2023)

Validation of FICO 10T and VantageScore 4.0​

News Release: FHFA Announces Validation of FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac (10/24/2022)

Fact Sheet: FHFA Announcement of Credit Score Models (10/24/2022)

Validation of Classic FICO​

News Release: FHFA Announces Validation of Classic FICO by Fannie Mae and Freddie Mac (11/10/2020)

Joint Credit Score Solicitation

News Release: Fannie Mae and Freddie Mac Publish Joint Enterprise Credit Score Solicitation(2/18/2020)

Fannie Mae Credit Score Solicitation(2/18/2020)

Freddie Mac Credit Score Solicitation​ (2/28/2020)

Final Rule Resources

News Release: FHFA Publishes Final Rule on Credit Score Models(8/13/2019)

Final Rule: Validation and Approval of Credit Score Models (8/13/2019)

Fact Sheet: Validation and Approval of Credit Score Models - Final Rule (8/13/2019)

Proposed Rule Resources

Webinar Recording: Validation and Approval of Credit Score Models Proposed Rule(1/9/2019)

Webinar Transcript: Validation and Approval of Credit Score Models Proposed Rule (1/9/2019) 

Webinar Slide Presentation: Validation and Approval of Credit Score Models Proposed Rule (1/9/2019)  

Proposed Rule: Validation and Approval of Credit Score Models by the Enterprises (12/13/2018)

News Release: FHFA Issues Proposed Rule on Validation and Approval of Credit Score Models (12/13/2018)

FHFA Fact Sheet: Validation and Approval of Credit Score Models by the Enterprises (12/13/2018)

Decision to Shift Focus to Implementation of the Act

News Release: FHFA Announces Decision to Stop Credit Score Initiative (7/23/2018)

Infographic: Mortgage Industry Use of Credit Scores (7/23/2018)

Request for Input

News Release: FHFA Extends Deadline to March 30 for Request for Input on Fannie Mae and Freddie Mac Credit Score Requirements (2/2/2018)

FHFA Insights Blog: FHFA Needs Your Feedback on Credit Score Requirements (1/18/2018)

News Release: FHFA Issues Request for Input on Fannie Mae and Freddie Mac Credit Score Requirement (12/20/2017)

View Request for Input (Input was due March 30, 2018)

View Input Submitted (Select Credit Score in the pull down)​​

 

Page last updated: February 29, 2024