§ 1254.4. Requirements for use of a credit score.
173 words·~1 min read·
/us/cfr/t12/s§ 1254.4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Enterprise use of a credit score. An Enterprise is not required to use a credit score for any business purpose. However, if an Enterprise conditions its purchase of a mortgage on the provision of a credit score for the borrower:
(1)The credit score must be derived from a credit score model that has been approved by the Enterprise in accordance with this part; and
(2)The Enterprise must provide for the use of the credit score by any automated underwriting system that uses a credit score and any other procedures and systems used by the Enterprise that use a credit score for mortgage purchases.
(b)Replacement of credit score model. An Enterprise may replace any credit score model then in use after a new credit score model has been approved in accordance with this part.
(c)No right to continuing use. Enterprise use of a particular credit score model does not create any right to or expectation of continuing, future, or permanent use of that credit score model by an Enterprise.