Federal Housing Finance Agency plans to ease credit data requirements for Fannie Mae and Freddie Mac

Fannie Mae: Fannie Mae is a government-sponsored enterprise that buys and securitizes residential mortgages to provide liquidity to the housing market. It operates under the oversight of the Federal Housing Finance Agency. The agency plans to instruct Fannie Mae to require lenders to obtain credit data from only two bureaus rather than three. Freddie Mac: Freddie Mac is a government-sponsored enterprise that purchases mortgages from lenders and packages them into securities for investors. It is regulated by the Federal Housing Finance Agency alongside Fannie Mae. FHFA intends to direct it to adjust credit reporting standards for originating lenders in the coming weeks. Federal Housing Finance Agency: The Federal Housing Finance Agency serves as the primary regulator and conservator for Fannie Mae and Freddie Mac. Under Director Bill Pulte, it focuses on overseeing the mortgage market and implementing policy adjustments for the enterprises it supervises. In the current news, the agency is preparing to direct changes to credit data requirements for loans sold to these entities. Credit Reporting Policy: FHFA Director Bill Pulte has publicly indicated plans to move away from the traditional requirement for lenders to pull data from all three major credit bureaus when originating loans for Fannie Mae and Freddie Mac. Mortgage Market Oversight: Recent FHFA actions under Pulte include expanding options for credit scoring models used by the enterprises while evaluating ways to streamline data collection processes for lenders.