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Fannie, Freddie urged to adopt more up-to-date credit scoring models
Fannie, Freddie urged to adopt more up-to-date credit scoring models

Are the two biggest players in the American mortgage arena — Fannie Mae and Freddie Mac — needlessly preventing millions of African Americans, Latinos and young consumers from qualifying for a loan because they don't have a FICO credit score? Some critics say the answer is an emphatic yes. James H. Carr, formerly a vice president at Fannie Mae and now a senior policy fellow with the nonprofit Opportunity Agenda, says the failure of both corporations to adopt up-to-date, more sophisticated credit scoring models has a "disparate impact" on minority consumers and is discouraging first-time home purchases. Large numbers of Americans cannot be scored using the...

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