Deciphering FHFA's credit score transition

The classic FICO score has been the gatekeeper to U.S. homeownership for decades, but the Federal Housing Finance Agency (FHFA) has been brewing up a new approach since 2018. Where the classic model factors in credit card and loan payment histories, the new kids on the block-FICO Score 10 T and Vant...

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Bibliographic Details
Published inIndependent Banker Vol. 74; no. 8; pp. 34 - 35
Main Authors Haynie, Ron, Roy, Tim
Format Trade Publication Article
LanguageEnglish
Published Sauk Centre Independent Community Bankers of America 01.08.2024
Subjects
Banks
Consumer protection
Credit scoring
Government sponsored enterprises
Mortgage companies
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Summary:The classic FICO score has been the gatekeeper to U.S. homeownership for decades, but the Federal Housing Finance Agency (FHFA) has been brewing up a new approach since 2018. Where the classic model factors in credit card and loan payment histories, the new kids on the block-FICO Score 10 T and VantageScore 4.0-take into account rent payments, utility bills, telecom bills and information sources like public records. Ron Haynie is ICBA's senior vice president of mortgage finance policy.
ISSN:0019-3674