GSEs approve continued use of Classic FICO

Federal Issues FHFA FICO Fannie Mae Freddie Mac Mortgages

On November 10, the FHFA announced that, in accordance with the requirements of the Validation and Approval of Credit Score Models Rule (covered by InfoBytes here), Fannie Mae and Freddie Mac (GSEs) have approved the Classic FICO credit score model for continued use. (See also GSE announcements here and here). The FHFA notes that this approval will allow the GSEs “to continue supporting the mortgage market while assessing more modern credit score models” received in response to a Joint Enterprise Credit Score Solicitation​ announced in February. The FHFA anticipates that the validation and approval process for the additional credit score models will take an additional year to complete.