Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

FICO’s grip on mortgage credit scores challenged

Aaron Schrank Mar 14, 2018
HTML EMBED:
COPY

FICO’s grip on mortgage credit scores challenged

Aaron Schrank Mar 14, 2018
HTML EMBED:
COPY

Mortgage finance giants Fannie Mae and Freddie Mac consider one credit score when determining the creditworthiness of mortgage applicants: FICO.  Some members of Congress want to change that by adding a provision to a bank deregulation bill that would require Fannie and Freddie to also look at applicants’ VantageScore. The company that calculates VantageScores is owned by the big three credit reporting firms: Equifax, TransUnion and Experian. We look at the reason for the proposed change, and its implications.

Click the audio player above to hear the full story. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.