On August 13, 2019 the Federal Housing Finance Agency (FHFA) released a final credit score rule for Fannie Mae and Freddie Mac (the GSEs). This rule implements requirement that were enacted as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018. The rule establishes the processes and standards that the GSEs will use in evaluating third-party credit scoring models. The evaluation of credit-score models will include the following four phases:
- The FHFA directs the GSE to solicit a credit-score model from third-party model developers;
- The GSE performs an initial assessment of applications;
- The GSE assesses the credit score; and,
- The GSE Business Assessment.
The rule provides for FHFA review and approval of GSE credit score solicitations and FHFA prior review and approval over the entire model acquisition process. The adoption of new credit scoring models by the GSEs will likely have a first effect in the mortgage industry, but may also drive innovations in credit scoring for other types of consumer finance.
Federal Housing Finance Agency Releases Credit Score Model Rule
Aug 16, 2019
On August 13, 2019 the Federal Housing Finance Agency (FHFA) released a final credit score rule for Fannie Mae and Freddie Mac (the GSEs). This rule implements requirement that were enacted as part of the Economic Growth, Regulatory Relief,… Read the rest
Policymakers move to protect servicemembers
Aug 15, 2019
The Consumer Financial Protection Bureau and the Arkansas attorney general’s recent settlement with Andrew Gamber and the three companies he owned and operated – Voyager Financial Group LLC, BAIC Inc. and SoBell Corp. –… Read the rest
WSJ article outlines danger of debt “settlement” companies
Aug 15, 2019
Last week, The Wall Street Journal published an article (may be behind the paywall) entitled “That Offer to Make You Debt-Free? It Can Make You Worse Off.” The piece detailed the unethical practices that the debt-settlement … Read the rest
AFSA SGA hits the road
Aug 14, 2019
Last week, AFSA State Government Affairs attended the American Association of Residential Mortgage Regulators (AARMR) 30th Annual Regulatory Conference in San Diego, California. The annual conference provides an opportunity for industry… Read the rest
Get a Jumpstart on the Future of Lending
Aug 14, 2019
Join us August 22 at 2 p.m. ET for “Future of Lending: Innovations Driving Credit Decisions,” presented by Experian. Presenter Amy Graybill, VP, USIS Strategic Initiatives will walk attendees through advancements in data … Read the rest
Head back to school with AFSAU!
Aug 13, 2019
Are you looking to take your compliance training to the next level? Have a fresh compliance training program but need a bit more substance? AFSAU is exactly what you need and it’s more affordable than ever.
Check out a small selection … Read the rest
CFPB Releases Outcomes from Use of Alternative Data in Credit Underwriting
Aug 12, 2019
The Consumer Financial Protection Bureau (CFPB) has released information from its review of alternative data underwriting by Upstart Network, Inc. (Upstart). Upstart received a No-Action Letter from the CFPB in 2017 that allowed the company… Read the rest
AFSA Attends NCSL Legislative Update
Aug 09, 2019
This week, AFSA’s State Government Affairs team attended the National Conference of State Legislatures (NCSL) meeting in Nashville, Tenn. With over 6,000 attendees, NCSL’s annual legislative summit is the largest gathering… Read the rest
Don’t Get Burned by Missing Out on the AFSA Summer Sale
Aug 08, 2019
Become a Business Partner Member today and start generating leads and winning customers in the consumer-finance industry. Enjoy a single rate for 2019 and 2020, plus a bonus worth $1,300.
Key Benefits of Business Partner Membership include:… Read the rest
AFSA Requests FTC Change Safeguards Rule
Aug 07, 2019
AFSA submitted a letter on August 2 to the Federal Trade Commission (FTC) seeking changes to its proposed rule amending the Standards for Safeguarding Customer Information before it is implemented.
Known as the Safeguards Rule, AFSA laid… Read the rest