tion 1328 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992; and 
‘‘(C) the Corporation provides for use of such 
credit score by all of its automated underwriting sys-
tems and any other procedures and systems used to 
purchase residential mortgages. 
‘‘(2) VALIDATION AND APPROVAL PROCESS.—The 
process described in paragraph (1)(B) shall include an 
evaluation of— 
‘‘(A) the criteria used to validate and approve 
a credit scoring model, including measures of the in-
tegrity, reliability, and accuracy of such model and 
an assurance that such model is consistent with the 
safe and sound operation of the Corporation; and 
‘‘(B) the data necessary for the validation of 
the credit scoring model. 
‘‘(3) APPLICATION.—If the Corporation elects to use 
a credit score under this subsection, the Corporation shall 
solicit applications from developers of credit scoring mod-
els for the validation and approval of such models under 
the process described in paragraph (1)(B). 
‘‘(4) TIMEFRAME FOR DETERMINATION; NOTICE.— 
‘‘(A) IN GENERAL.—The Corporation shall es-
tablish a date before which the Corporation shall 
make a determination with respect to any applica-
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tion submitted under paragraph (3) and provide no-
tice of such determination to the applicant. Such 
date shall not be later than 180 days after the date 
on which an application is submitted to the Corpora-
tion. 
‘‘(B) EXTENSIONS.—The Director of the Fed-
eral Housing Finance Agency may authorize up to 
2 extensions of the date established under subpara-
graph (A), each of which shall not exceed 30 days, 
upon the written request and a showing of good 
cause by the Corporation. 
‘‘(C) STATUS NOTICE.—The Corporation shall 
provide notice to an applicant regarding the status 
of an application submitted under paragraph (3) not 
later than 60 days after the date on which the appli-
cation was submitted to the corporation. 
‘‘(D) REASONS FOR DISAPPROVAL.—If an ap-
plication is disapproved, the corporation shall pro-
vide to the applicant the reasons for the disapproval 
not later than 30 days after a determination is made 
under this paragraph. 
‘‘(5) AUTHORITY OF DIRECTOR.—If the Corporation 
elects to use a credit score under this subsection, the Di-
rector of the Federal Housing Finance Agency shall re-
quire the Corporation to routinely update the validation 
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and approval process described in paragraph (1)(B) as the 
Director, in the Director’s discretion, deems to be nec-
essary to ensure such process remains appropriate and 
adequate and complies with any standards and criteria es-
tablished pursuant to section 1328 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992. 
‘‘(6) CREDIT SCORE DEFINED.—In this subsection, 
the term ‘credit score’ means a numerical value or a cat-
egorization derived from a statistical tool or modeling sys-
tem used by a person who makes or arranges a loan to 
predict the likelihood of certain credit behaviors, including 
default.’’. 
SEC. 3. AUTHORITY OF DIRECTOR OF THE FEDERAL HOUS-
ING FINANCE AGENCY. 
Subpart A of part 2 of subtitle A of the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4541 et seq.) is amended by adding 
at the end the following new section: 
‘‘SEC. 1328. REGULATIONS FOR USE OF CREDIT SCORES. 
‘‘The Director may, by regulation, establish stand-
ards and criteria for any process used by an enterprise 
to validate and approve credit scoring models pursuant to 
section 302(b)(7) of the Federal National Mortgage Asso-
ciation Charter Act and section 305(d) of the Federal 
Home Loan Mortgage Corporation Act.’’. 
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SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
180 days after the date of enactment of this Act. 
Æ 
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