CRED Act

Finance and Financial Sector
house
senate
president

Introduced on April 19, 2024 by Ritchie Torres

Cosponsors

Legislation Details

  • The legislation mandates the Director of the Federal Housing Finance Agency to analyze the implications of requiring only two credit reports and scores instead of three for mortgage loan approvals.
  • Key considerations for the analysis include:
    • Potential cost savings for mortgage borrowers.
    • The impact on consumers’ access to mortgage credit by reducing the number of credit reports and scores required.
    • Compliance and operational costs implications for mortgage lenders, servicers, the three national credit reporting agencies, and the enterprises.
    • Legal risks for mortgage lenders and servicers arising from the selection of two credit reports and scores.
  • The Director is required to publish the analysis in the Federal Register and solicit public comments for a period of 90 days.
  • The Director is prohibited from implementing the requirement to obtain two credit reports and scores until the public comment period concludes.
  • Definitions provided in the legislation include terms such as “Director,” “consumer report,” “credit score,” “national consumer reporting agency,” and “residential mortgage.”

Last updated 9/28/2024