Skip to main content

  • Comment Detail

  • Date: 03/26/18
    First Name: Alex
    Last Name: Pollock
    Email: cpackard@rstreet.org
    Organization Type: other
    Organization: R Street Institute

  • Comment

    The Hon. Mel Watt
    Director
    Federal Housing Finance Agency
    Constitution Center
    400 7th Street, SW
    Washington, D.C. 20219

    Director Watt,

    I greatly appreciate FHFA’s decision to request information regarding potential changes to Fannie Mae and Freddie Mac’s credit scoring models. FHFA should be commended for engaging in a thoughtful and deliberative process on this important issue. I have attached my thoughts on the Request for Information.

    Generally speaking, I am in favor of those bearing the credit risk to determine which credit scores they will use, and not permitting lenders to choose. Ultimately Fannie Mae and Freddie Mac should make this decision subject to regulatory review by FHFA. Fannie and Freddie would not necessarily have to make the same decision about which scoring models to use. Moreover, either or both could run pilot programs to determine which model or models are most useful to them.

    Thank you again for soliciting input from various stakeholders. Should you have any questions, please do not hesitate to contact me. My office telephone number is (202) 525-5717.

    Sincerely,

    Alex J. Pollock
    Distinguished Senior Fellow
    R Street Institute
    1212 New York Avenue, NW
    Washington, D.C. 20005