| Topics and Issues | Credit scores (42) |
In January 2024, Community Home Lenders of America issued a White Paper on Mortgage Credit Score Markets and Pricing How to Ensure the Market Remains Fair to All Borrowers. As noted in the introduction,
parts of the mortgage-making process that are “behind the scenes” are less well understood today – one area being the credit-scoring process. This integral part of how, and whether, Americans access mortgage credit is poorly understood in Washington D.C. Indeed, few policymakers are exposed to the plumbing and policy here, and when asked how it all works, they admit they don’t follow this space closely. When asked if they understand how the pricing works, which market participants decide the pricing, and how these decisions affect consumers, they admit they have very little foundational knowledge at all. The Community Home Lenders of America decided to explore this area in detail to foster better dialogue among policymakers and stakeholders.