Home›Real Estate›Industry›CHLA backs FHFA push to disclose Fannie and Freddie cr…

CHLA backs FHFA push to disclose Fannie and Freddie credit scores

HousingWire reports the group says publishing additional credit performance data could improve mortgage-market transparency and help investors evaluate prepayment speeds and loan credit performance.

Reported · Written up by our desk · Industry

HousingWire reports that the Community Home Lenders of America has backed Federal Housing Finance Agency Director Bill Pulte’s push for Fannie Mae and Freddie Mac to publicly disclose their own credit score numbers for mortgages and mortgage-backed securities.

CHLA said in a letter sent to Pulte on Tuesday that adding more credit performance data would improve transparency in the mortgage market, helping investors assess prepayment speeds and the credit performance of the underlying loans.

The trade group also argued that additional market data and comparative metrics could reduce recurring increases in the cost of credit score pricing, linking the disclosure effort to lower friction in recurring pricing.

HousingWire reports CHLA said the move could improve market efficiency and support the safety and soundness of the overall U.S. mortgage market.

More like this

Sources