The Federal Housing Finance Agency (FHFA) is making CHANGES!
We all know that it is important to monitor the current state of the Real Estate Market, but how do you keep your clients informed about the future of Real Estate?
There are changes being made on how Credit impacts the Lending Process, and you need to know about it! The FHFA announced at the end of October that there will be MAJOR changes to the way that lenders assess your client’s risk factor. Fannie Mae and Freddie Mac have used the Classic FICO model for over 20 years, and it is going to be transitioned OUT!!!
This is going to be a MAJOR change and is expected to be a multiyear process. The new scoring systems to be used are FICO 10T and VantageScore4.0.
In my opinion, this is GREAT for your clients! These new scoring systems will allow for rent, utilities, and even telecom payments to be included. The current FICO scores are said to show a “Snapshot” of each person’s credit, while the new system is to more of a “30-second video clip”.
As more information comes out about these changes, you can rest assured that I will keep you informed.
If you have any Credit Related questions, please reach out to me!
Kind regards,
Deryk Faber