Community Home Lenders of America Urges FHFA to Consider Slower Implementation of Credit Score Reporting Process
(Washington, DC) – The Community Home Lenders of America (CHLA) has expressed in a letter to the Federal Housing Finance Agency (FHFA), its appreciation for their ongoing efforts in enhancing the credit score reporting process. CHLA is urging a slower implementation schedule, by starting with VantageScore, the new entrant in this space, and recommends that the FICO 10T requirement be deferred to a later phase.
“CHLA appreciates the opportunity to provide feedback and encourages FHFA to slow the implementation of the credit score reporting process by beginning with VantageScore and delaying the FICO 10T requirement,” said Scott Olson, Executive Director of CHLA. “We look forward to continuing work with FHFA and other stakeholders to address and implement policies that promote responsible lending practices and broaden homeownership opportunities for all Americans.”
CHLA’s position was previously outlined in the recent industry letter issued on June 22, 2023, which argued for a slower implementation schedule.
Today’s letter emphasizes the significance of allowing more time for stakeholders to provide feedback and stay informed about the progress in data analysis, program policy, and timeline decisions. CHLA also recommended engaging with credit score stakeholders such as the Federal Housing Administration (FHA), Veterans Affairs (VA), and Government National Mortgage Association (Ginnie Mae) to foster collaboration and align goals in the credit score reporting process.
The letter also raises CHLA’s concerns about FICO’s expanding role in the credit score reporting process, considering the 400% price increase FICO imposed last year and exemption of large lenders from this price hike. CHLA argues that FHFA should not expand FICO’s authority to use alternative credit score models on Enterprise loans until the 400% price hike and discriminatory application is addressed.