By Thomas G. Wolfe, J.D.
In connection with the Federal Housing Finance Agency’s “2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions,” nine national banking, mortgage, and finance groups have jointly submitted a letter to FHFA Director Melvin Watt, urging the agency to “engage more openly and broadly” with the industry “through a public forum.” Further, in their Feb. 8, 2017, letter, the trade groups ask the FHFA to better inform the industry about relevant data from the government-sponsored enterprises that may impact the credit score models and to share its assessment of fair lending risks “posed by contemplated changes.”
The letter from the American Bankers Association, Community Home Lenders Association, Community Mortgage Lenders of America, Credit Union National Association, Housing Policy Council of the Financial Services Roundtable, Independent Community Bankers of America, Mortgage Bankers Association, National Association of Federally-Insured Credit Unions, and U.S. Mortgage Insurers also requests that the FHFA provide an implementation period “of at least 24 months once there is a final decision regarding any new/alternative credit score model.”
As observed in the trade groups’ letter, the 2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions directs the Enterprises to “conclude assessment of updated credit score models for underwriting, pricing, and investor disclosures, and, as appropriate, plan for implementation.” While the groups express their appreciation for the FHFA’s work in this area, they urge the FHFA to actively seek “additional consultation with industry on potential options.” Moreover, the trade groups propose a meeting with the FHFA to discuss these options and to provide feedback “directly to FHFA staff.”
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