St Casimirs Mortgage Minute

Congress to Consider Dramatic Overhaul of Credit Reporting

Legislation introduced on May 19 by U.S. Rep. Maxine Waters (D-Calif.) aims to overhaul the nation's credit reporting system in an effort to make it fairer, more accurate, and less confusing for consumers. The Comprehensive Consumer Credit Reporting Reform Act of 2016 would, among other things, reduce the time most adverse credit information stays on a consumer's credit report to four years; require the removal of paid and settled debts within 45 days; give the Consumer Financial Protection Bureau "explicit authority" to monitor the development of credit scoring models; and require the Federal Housing Finance Agency to study using alternate, additional, or updated credit scoring models as part of the seller-servicers guides used by Fannie Mae and Freddie Mac on an ongoing basis.

From "Congress to Consider Dramatic Overhaul of Credit Reporting"
HousingWire (05/19/16) Lane, Ben