,i #aae? ,,congress #a/ ,session ,h4 ,r4 #hih ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #g1 #bjag,mr4 ,royce ( ,cali=nia 7= himself1 ,ms4 ,s9ema1 & ,ms4 ,sewell ( ,alabama7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to require ,fannie ,mae & ,fr$die ,mac to e/abli% proc$ures = consid]+ c]ta9 cr$it scores 9 mak+ a det]m9ation :e!r to pur*ase a resid5tial mortgage1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,cr$it ,score ,competition ,act ( #bjag4 #b4 ,cr$it score validation2 validation process 7a7 ,use ( cr$it scores by ,fannie ,mae 9 pur*as+ resid5tial mortgages ,subsection 7b7 ( section #cjb ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agag7;b77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 7,a7 ,use ( cr$it scores ,! corporation may condition its pur*ase ( a resid5tial mortgage "u ?is section on ! provision ( a cr$it score = ! borr[] only if-- 7i7 ! cr$it score is d]iv$ f any cr$it scor+ model t has be5 validat$ & approv$ by ! corporation "u ?is p>agraph2 7ii7 ! corporation has e/abli%$ & made publicly available a description ( ! process ! corporation w use to validate & approve cr$it scor+ models1 :i* process %all comply ) any /&>ds & crit]ia e/abli%$ by ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy pursuant to section #acbh ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib2 & 7iii7 ! corporation provides = ! use ( su* cr$it score by all ( its automat$ und]writ+ sy/ems & any o!r proc$ures & sy/ems us$ to pur*ase resid5tial mortgages4 7,b7 ,validation & approval process ,! process describ$ 9 subp>agraph 7,a77ii7 %all include an evaluation (-- 7i7 ! crit]ia us$ to validate & approve a cr$it scor+ model1 includ+ measures ( ! integrity1 reliability1 & accuracy ( su* model1 & an assurance t su* model is consi/5t ) ! safe & s\nd op]ation ( ! corporation2 & 7ii7 ! data necess>y = ! validation ( ! cr$it scor+ model4 7,c7 ,application ,if ! corporation elects to use a cr$it score "u ?is p>agraph1 ! corporation %all solicit applications f develop]s ( cr$it scor+ models = ! validation & approval ( su* models "u ! process describ$ 9 subp>agraph 7,a77ii74 7,d7 ,timeframe = det]m9ation2 notice 7i7 ,9 g5]al ,! corporation %all e/abli% a date be=e :i* ! corporation %all make a det]m9ation ) respect to any application submitt$ "u subp>agraph 7,c7 & provide notice ( su* det]m9ation to ! applicant4 ,su* date %all n be lat] ?an #ahj days aft] ! date on :i* an application is submitt$ to ! corporation4 7ii7 ,ext5sions ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy may au?orize up to #b ext5sions ( ! date e/abli%$ "u clause 7i71 ea* ( :i* %all n exce$ #cj days1 ^u ! writt5 reque/ & a %[+ ( good cause by ! corporation4 7iii7 ,/atus notice ,! corporation %all provide notice to an applicant reg>d+ ! /atus ( an application submitt$ "u subp>agraph 7,c7 n lat] ?an #fj days aft] ! date on :i* ! application 0 submitt$ to ! corporation4 7iv7 ,reasons = disapproval ,if an application is disapprov$1 ! corporation %all provide to ! applicant ! reasons = ! disapproval n lat] ?an #cj days aft] a det]m9ation is made "u ?is subp>agraph4 7,e7 ,au?ority ( ,director ,if ! corporation elects to use a cr$it score "u ?is p>agraph1 ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy %all require ! corporation to r\t9ely update ! validation & approval process describ$ 9 subp>agraph 7,a77ii7 z ! ,director1 9 ! ,director's discretion1 deems to be necess>y to ensure su* process rema9s appropriate & adequate & complies ) any /&>ds & crit]ia e/abli%$ pursuant to section #acbh ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib4 7,f7 ,cr$it score def9$ ,9 ?is p>agraph1 ! t]m cr$it score means a num]ical value or a categorization d]iv$ f a /ati/ical tool or model+ sy/em us$ by a p]son :o makes or arranges a loan to pr$ict ! likelihood ( c]ta9 cr$it behaviors1 includ+ default4 4 7b7 ,use ( cr$it scores by ,fr$die ,mac 9 pur*as+ resid5tial mortgages ,section #cje ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 7#a7 ,use ( cr$it scores ,! ,corporation may condition its pur*ase ( a resid5tial mortgage "u ?is section on ! provision ( a cr$it score = ! borr[] only if-- 7,a7 ! cr$it score is d]iv$ f any cr$it scor+ model t has be5 validat$ & approv$ by ! ,corporation "u ?is subsection2 7,b7 ! ,corporation has e/abli%$ & made publicly available a description ( ! process ! corporation w use to validate & approve cr$it scor+ models1 :i* %all comply ) any /&>ds & crit]ia e/abli%$ by ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy pursuant to section #acbh ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib2 & 7,c7 ! ,corporation provides = use ( su* cr$it score by all ( its automat$ und]writ+ sy/ems & any o!r proc$ures & sy/ems us$ to pur*ase resid5tial mortgages4 7#b7 ,validation & approval process ,! process describ$ 9 p>agraph 7#a77;,b7 %all include an evaluation (-- 7,a7 ! crit]ia us$ to validate & approve a cr$it scor+ model1 includ+ measures ( ! integrity1 reliability1 & accuracy ( su* model & an assurance t su* model is consi/5t ) ! safe & s\nd op]ation ( ! ,corporation2 & 7,b7 ! data necess>y = ! validation ( ! cr$it scor+ model4 7#c7 ,application ,if ! ,corporation elects to use a cr$it score "u ?is subsection1 ! ,corporation %all solicit applications f develop]s ( cr$it scor+ models = ! validation & approval ( su* models "u ! process describ$ 9 p>agraph 7#a77;,b74 7#d7 ,timeframe = det]m9ation2 notice 7,a7 ,9 g5]al ,! ,corporation %all e/abli% a date be=e :i* ! ,corporation %all make a det]m9ation ) respect to any application submitt$ "u p>agraph 7#c7 & provide notice ( su* det]m9ation to ! applicant4 ,su* date %all n be lat] ?an #ahj days aft] ! date on :i* an application is submitt$ to ! ,corporation4 7,b7 ,ext5sions ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy may au?orize up to #b ext5sions ( ! date e/abli%$ "u subp>agraph 7,a71 ea* ( :i* %all n exce$ #cj days1 ^u ! writt5 reque/ & a %[+ ( good cause by ! ,corporation4 7,c7 ,/atus notice ,! ,corporation %all provide notice to an applicant reg>d+ ! /atus ( an application submitt$ "u p>agraph 7#c7 n lat] ?an #fj days aft] ! date on :i* ! application 0 submitt$ to ! corporation4 7,d7 ,reasons = disapproval ,if an application is disapprov$1 ! corporation %all provide to ! applicant ! reasons = ! disapproval n lat] ?an #cj days aft] a det]m9ation is made "u ?is p>agraph4 7#e7 ,au?ority ( ,director ,if ! ,corporation elects to use a cr$it score "u ?is subsection1 ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy %all require ! ,corporation to r\t9ely update ! validation & approval process describ$ 9 p>agraph 7#a77;,b7 z ! ,director1 9 ! ,director's discretion1 deems to be necess>y to ensure su* process rema9s appropriate & adequate & complies ) any /&>ds & crit]ia e/abli%$ pursuant to section #acbh ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib4 7#f7 ,cr$it score def9$ ,9 ?is subsection1 ! t]m cr$it score means a num]ical value or a categorization d]iv$ f a /ati/ical tool or model+ sy/em us$ by a p]son :o makes or arranges a loan to pr$ict ! likelihood ( c]ta9 cr$it behaviors1 includ+ default4 4 #c4 ,au?ority ( ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy ,subp>t ,a ( "p #b ( subtitle ,a ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #deda et seq47 is am5d$ by add+ at ! end ! foll[+ new section3 #acbh4 ,regulations = use ( cr$it scores ,! ,director may1 by regulation1 e/abli% /&>ds & crit]ia = any process us$ by an ent]prise to validate & approve cr$it scor+ models pursuant to section #cjb7;b77#g7 ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act & section #cje7;d7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act4 4 #d4 ,effective date ,! am5dm5ts made by ?is ,act %all take effect #ahj days aft] ! date ( enactm5t ( ?is ,act4