November 10, 2020

FHFA: Validation of Classic FICO for Use by Fannie Mae and Freddie Mac Announced

The Federal Housing Finance Agency (FHFA) today announced the validation and approval of the Classic FICO credit score model for use by Fannie Mae and Freddie Mac (the Enterprises). The validation and approval of Classic FICO by the Enterprises allows them to continue supporting the mortgage market while assessing more modern credit score models that were submitted in response to the 2020 Joint Enterprise Credit Score Solicitation​. FHFA expects it will take the Enterprises an additional year to complete the validation and approval process of the remaining credit score models submitted in response to the solicitation. 

The validation and approval of the Classic FICO credit score model is an incremental step in meeting the requirements outlined in Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which stipulated a November 20, 2020 deadline for the Enterprises to use a validated and approved credit score model.  

Link to Fannie Mae Credit Score Announcement​

Link to Freddie Mac Credit Score Announcement​

This post was originally published here.