Page 4 - July 18, 2024 Bulletin

BANKING
ARTICLES

Regulators Release 2024 List rose slightly from 8.1% in 2022 to 8.2% in 2023. The share made
of Distressed, Underserved to Hispanic-White borrowers increased from 9.1% to 9.9%, and
the share made to Asian borrowers increased slightly from 7.6% to
Communities 7.7%.

Federal banking regulators have released the 2024 list of distressed Read more: https://ffiec.cfpb.gov/data-publication/snapshot-national-
or underserved nonmetropolitan middle-income geographies. loan-level-dataset/2023
Distressed or underserved nonmetropolitan middle-income
geographies are census tracts where revitalization or stabilization Fannie Mae, Freddie Mac Release
activities are eligible to receive Community Reinvestment Act Historical Data for Credit Score
consideration. The designations reflect local economic conditions,
including unemployment, poverty and population changes, Transition
according to the agencies.
The Federal Housing Finance Agency announced that Fannie Mae
Read more: https://www.fdic.gov/system/files/2024-07/2024distresse and Freddie Mac are making historical VantageScore 4.0 credit scores
dorunderservedtracts_0.pdf available to approved users to support the transition to updated
credit score and credit report requirements.
Nonbanks Accounted for Two- FHFA announced two years ago it would replace the FICO credit
Thirds of Mortgage Transactions score model used by Fannie and Freddie with the FICO 10T and
in 2023 the VantageScore 4.0 credit score models and that the enterprises
would transition from a tri-merge requirement, in which credit
The number of financial institutions reporting mortgage lending reports are required from all three nationwide consumer reporting
transactions increased from 4,460 in 2022 to 5,113 in 2023, or agencies, to a bi-merge requirement. The historical credit scores for
14.6%, according to Mortgage Disclosure Act data published Fannie and Freddie are associated with single-family loans purchased
by the Federal Financial Institutions Examinations Council. The by the enterprises from April 2013 through March 2023, according
institutions included banks, savings associations, credit unions and to the agency. “The use of these modernized credit score models
mortgage companies. However, the share of mortgages originated will enhance risk management while furthering sustainable access to
by nondepository, independent mortgage companies accounted for credit for consumers,” FHFA Director Sandra Thompson said.
68.8% of first lien, one- to four-family, site-built, owner-occupied The release of the Vantage data by the enterprises includes tri-merge
home-purchase loans in 2023, up from 60.2% in 2022. and bi-merge calculations, and are provided to match with the
The 2023 data included information on 10 million home loan enterprises’ existing MBS disclosures and CRT and single-family
applications, a decrease from the 14.3 million reported in 2022, historical loan level datasets. Access and how to use to the data sets
according to the FFIEC. Among them, 7.7 million were closed-end can be found on the Fannie and Freddie websites. Although still
– that is, a home mortgage loan – and 2.1 million were open-end – a uncertain, the release of FICO 10T data is expected at a later date.
home equity line of credit. Read more: https://historicalcreditscores.fanniemae.com/

In terms of borrower race and ethnicity, the share of closed-end or: https://sf.freddiemac.com/general/credit-score-models
home purchase loans made to Black or African American borrowers

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