The housing market could be on the verge of a shake-up, as well-established credit scoring requirements are being reevaluated by the Federal Housing Finance Agency (FHFA), potentially opening up the mortgage market to a greater number of aspiring homeowners.
The FHFA is contemplating whether to change a longstanding requirement for lenders to assess potential buyers using FICO scores, which some believe limit the pool of applicants because they are dated and conservative. The agency announced on Dec. 20 that it was seeking feedback from mortgage industry stakeholders regarding competition and operational concerns related to the credit scoring process.
The National Association of Realtors (NAR) said altering the model could help Americans that have traditionally struggled with homeownership prospects.
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