Are credit bureaus, housing groups in cahoots to kill FICO scores?

Mortgage

Efforts to persuade regulators to allow Fannie Mae and Freddie Mac to use alternative credit scores would stifle competition between the credit bureaus and FICO and do little to expand access to credit, according to industry analyst Chris Whalen.

A bipartisan bill introduced in the Senate with broad housing industry support last month would require the Federal Housing Finance Agency to direct the government-sponsored enterprises to accept new credit scoring models, like the VantageScore model created by Equifax, Experian and TransUnion. FHFA Director Mel Watt said the GSEs will not adopt the new scores until 2019 at the earliest, saying other issues must be resolved first.

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