A movement to convince Freddie Mac and Fannie Mae to use newer credit scoring models was emboldened by a new study from the Consumer Financial Protection Bureau (CFPB), which states that newer credit models will result in both a greater availability and lower cost of consumer credit. This movement had lost steam last year when the Federal Housing Finance Agency (FHFA) announced that they were years away from authorizing the use of a new credit model, but finds new life in the CFPB’s study. The study, which examined Upstart Network’s underwriting model in comparison with a traditional underwriting model, found that Upstart Network’s model approved 27% more loans with a 16% drop in average percentage rates.

Read more via Housing Wire.