Tag Archives: Credit Scoring

An analysis of HMDA data found that even though the rate of mortgages made to minorities is rebounding, the loan denial rates for this group remain high. Can alternative forms of credit scoring help them become homeowners?

With the FHFA considering the possibility of changing the credit score requirements the GSEs requires, what are the advantages of credit scoring competition and what impact could these potential changes have on future default rates?

FHFA Director Mel Watt said the topic of alternative credit score models has been among the most difficult evaluations he’s undertaken in his tenure, and with all the arguments for and against it, it’s understandable why.

Currently, Fannie Mae and Freddie Mac consider only the FICO scoring model when making mortgage purchase decisions. How much of a difference would it make to the industry if they considered an alternative credit scoring model?