“VantageScore Solutions is encouraged by today’s introduction of H.R. 4211 “Credit Score Competition Act of 2015” by Representatives Ed Royce (R-CA) and Terri Sewell (D-AL). Outdated credit scoring models required by Fannie Mae and Freddie Mac limit opportunities for millions of creditworthy borrowers who, through no fault of their own, are unfairly locked out of the automated underwriting programs used by most mortgage lenders. Locking out competitive models and creating what is essentially a government sanctioned monopoly also undermines innovation among model developers, which must be preserved and encouraged in order for the market to operate efficiently for borrowers and lenders.
Americans recently voiced their desire for competition in the credit scoring marketplace in a nationally representative telephone survey commissioned by VantageScore Solutions. Half of Americans (50 percent) say competition in the credit scoring marketplace is beneficial to American consumers, while less than one in five (17 percent) disagree. Furthermore, having multiple credit scores is viewed positively by the majority of Americans. Of those who were scored by multiple models in the past year, 55% report that it had a positive impact on their understanding of their credit score, compared to just 4% who indicate it had a negative impact.
We strongly support a bill that promotes access to sustainable mortgage credit, and healthy choice and competition among credit scoring models. We encourage industry leaders to voice their support of this bipartisan measure.”