As new credit score models hit RMBS, investors want performance data

As new credit score models hit RMBS, investors want performance data

Mortgage lenders are rolling out new credit scoring models, but in the secondary market, investors and credit rating agencies are awaiting additional performance data while developing workarounds to keep loans moving through the system. Susan Hosterman, senior director for North America RMBS and covered bonds at Fitch Ratings, said the company can currently rate securitizations that feature the new models, provided that the vast majority of the …

FHA, Fannie Mae and Freddie Mac Announce Authorization for New Credit Scoring Models

FHA, in coordination with FHFA, has announced authorization for the use of VantageScore 4.0 and FICO Score 10T for FHA-insured loans. Contemporaneously, Fannie Mae and Freddie Mac have announced that each company will begin accepting mortgage loans in a rollout for a group of approved, participating lenders using VantageScore 4.0 with similar implementation efforts underway for FICO Score 10T in the near future.   This transition is designed to …