“We are modernizing credit scoring with more predictive models, helping millions of Americans who responsibly pay rent qualify for mortgages,” said FHFA Director William Pulte. “That’s fair, it’s commonsense, and it’s finally delivering the benefits of competition to homebuyers nationwide.”

 According to HUD Secretary Scott Turner, “By embracing additional predictive credit scoring models, we are taking a meaningful step toward expanding access to homeownership – particularly for creditworthy borrowers who may have been overlooked under older systems.” 

Fannie Mae and Freddie Mac described a limited rollout effort with approved lenders for the time being, noting that interested lenders can contact their representative if they wish to pursue new model usage before a broader rollout effort. Details on which lenders will be allowed to use the new models are not yet clear; however, groups like the Mortgage Bankers Association, Pennymac, and the Community Home Lenders of America all lauded the move as an important step to introducing competition into the market and modernizing credit scoring frameworks.