New House bill would end 'FICO monopoly' at Fannie Mae, Freddie MacBipartisan bill pushes Fannie, Freddie to look at alternative credit scores
A bill introduced in the House of Representatives would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use when determining what loans to purchase. The bill, which is entitled the “Credit Score Competition Act of 2015,” was introduced Thursday by Rep. Ed Royce, R-CA., and Rep. Terri Sewell, D-AL. According to a joint release from Royce and Sewell, the bill would enable Fannie and Freddie to consider other credit-scoring models, which would level the playing field for borrowers whose credit doesn’t meet FICO’s standards and make it easier for them to buy a home.
Record Number of Renter Households Face Severe Affordability Problems, As Rents Grow Faster Than Incomes and Increased Supply Fails to Meet DemandHarvard’s Joint Center for Housing Studies Releases Biennial Rental Housing Report
Multifamily housing construction has accelerated to its fastest pace in nearly 30 years but has still not been sufficient to meet surging demand. Rental vacancy rates are now at their lowest point since 1985 and inflation-adjusted rents are rising 3.5 percent annually. With renter incomes stagnant, last year was another record-setting year in the number of renters paying more than 30 percent of their income on housing costs, according to the 2015 report on rental housing released today from the Harvard Joint Center for Housing Studies at the Newseum in Washington, D.C. While lower-income households are most likely to experience these cost burdens, the report finds that rental cost burdens increasingly afflict even moderate-income renters earning as much as $45,000 per year.