Looks like the time has come to wrinkle out the old and ring in the new.
At least as far as the FICO score is concerned.
A new bill has been introduced in the House Of Representatives titled, ‘Credit Score Competition Act of 2015’. It proposes an end to the monopoly that the FICO score has employed over other scoring systems. Fannie Mae and Freddie Mac, two of the largest mortgage purchasers in the Unites States, are at the center of the new development.
So, will the new bill affect your credit repair business? Read on…
A Homeowner’s Delight
Ask anyone, and we mean anyone, and they will tell you that owning their own home is part of the American dream. That is exactly the objective of the new bill. By providing lenders and mortgage purchasers more than one credit scoring system to rely on, they are boosting the probability for the common people to afford a house.
Representative Terry Sewell stated, “This legislation takes an important step towards addressing this issue and helps make homeownership a reality for more Americans across the country.”
By allowing other sound credit scoring models to be a part of the housing market, the new bill validates essential financial factors such as borrowers paying their rent on time. Something FICO does not take into consideration.
What this means to credit repair businesses, is they too will have to broaden their approach. The focus will no longer be on one single system, but on a few of them. And there lies the opportunity for your business to expand its operations.
So, will the change benefit your credit repair business?
A New Year, A New Perspective
And a new challenge for your business. A challenge that can easily become an opportunity to boost your earning potential. The utter dependence of Fannie Mae and Freddie Mac on the FICO score had created a monopoly. The Credit Score Competition Act of 2015 seeks to remedy that. The statement by the two representatives who passed the bill reveals more, “Opening the GSEs up to other credit scoring models will foster competition and innovation in the credit scoring industry.”
Innovation is, perhaps, the key word here. Let 2016 be an innovative year for your credit repair business as well. Are you ready for it?
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