Recommendations for future action
To counter these ongoing challenges, CHLA has urged Pulte to continue his leadership. The association specifically called for the FHFA to demand a halt to any further mortgage credit score price increases. Additionally, CHLA recommended convening an FHFA Task Force to review recent cost hikes and explore further reforms. The goal of this task force would be to introduce more competitors, thereby safeguarding against potential “duopolistic pricing” that could harm consumers.
CHLA proposed that Fannie Mae and Freddie Mac’s guidelines be revised to generically require credit scores, removing the explicit mention of “Fair Isaac” by name. The association argues that naming a specific company inhibits innovation and competition.
The association also reiterated its recommendation for the Government-Sponsored Enterprises (GSEs) to establish their own business subsidiaries for evaluating borrower creditworthiness. These entities, once proven reliable, could then be sold into the open market, serving as “independent umpires” and fostering greater competition while potentially providing an additional return on GSE assets.
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