Senate to consider bill to end “FICO monopoly” at Fannie Mae and Freddie Mac

Earlier this year, a bipartisan group reintroduced a bill in the House of Representatives that would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use. Now, a companion bill is being introduced in the Senate as well, with the backing of Senators from both parties.

The Senate version of the “Credit Score Competition Act” is sponsored by Sens. Tim Scott, R-South Carolina, and Mark Warner, D-Virginia.

In a joint statement, Scott and Warner say that the bill will help make credit available to ” some of the 26 million ‘credit invisible’ individuals in the housing market.”

Read the source article at U.S. Housing Finance News