A Fight Over the Credit Score Lenders Use for Your Mortgage
Banks and rival lenders are butting heads over the credit scores used to decide millions of mortgage requests by U.S. home buyers.
Now, a federal agency is weighing whether to step into the fight, which revolves around a longtime requirement for lenders who sell mortgages to Fannie Mae and Freddie Mac to gauge most borrowers using FICO scores. The Federal Housing Finance Agency's ultimate decision could have wide-reaching ramifications for the mortgage market and home buyers across the U.S.
Mat Ishbia, CEO of a major nonbank lender, United Wholesale Mortgage, said he was enthusiastic about a possible change. "Doing something just because you've always done it that way isn't a good enough reason," Mr. Ishbia said.