The Community Home Lenders of America has endorsed a Pulte proposal that would expand credit-score disclosures by the government-sponsored enterprises, according to a report by HousingWire.
In a letter to the Federal Housing Finance Agency, the trade group argued that additional information could give market participants a clearer view of mortgage-backed securities and the credit characteristics underpinning them.
CHLA also said greater disclosure could help address recurring increases in the cost of credit scores. Those expenses affect lenders' mortgage origination costs and can ultimately influence the economics of home lending.
The issue sits at the intersection of mortgage-market transparency and borrower affordability. Any FHFA action on the proposal would be closely watched by lenders, investors and other participants in the GSE-backed mortgage market.
