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Released: December 01, 2016
Fannie, Freddie have yet to change their scoring system for mortgages
Source: Kenneth Harney, Washington Post (Paid Registration)
The two behemoths of the mortgage business — Fannie Mae and Freddie Mac — continue to use a credit-scoring model that even its developer, FICO, says is not as “predictive” as its much newer models. Worse yet, Fannie and Freddie require that all lenders that want to submit loan applications to them must also use the same, outdated technology.
The net result, say critics from the lending industry, consumer groups, civil rights organizations and a bipartisan coalition of legislators in Congress, is that many applicants don’t get the credit scores they deserve.
Read Full Article: Fannie, Freddie have yet to change their scoring system for mortgages
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