Congressmen Gregory W. Meeks and Ritchie Torres Announce Federal Home Loan Bank of New York Now Accepts Alternative Credit Scoring Model

QUEENS, NY - Today, Congressmen Gregory Meeks (NY-05) and Ritchie Torres (NY-15) are proud to announce that the Federal Home Loan Bank of New York (FHLBNY) can now pledge mortgage collateral using VantageScore 4.0 credit scores, which considers rental payments and other data points that are not included in traditional scoring models - expanding the number of diverse and creditworthy mortgage applicants and creating more opportunities across the region to help narrow the racial homeownership gap.

In August 2024, Reps. Meeks and Torres formally requested that the FHLBNY consider accepting mortgage collateral originating using alternative credit scores such as VantageScore to expand homeownership opportunities across the FHLBNY's District. In response, the FHLBNY initiated a review of its ability to incorporate VantageScore 4.0 into its collateral processes, and today's announcement marks the culmination of this effort to offer this option to its membership of more than 330 local lenders.

"I remain committed to creating more wealth-building opportunities for the people of Southeast Queens, and homeownership is the best route to do so," Rep. Meeks said. "My family's own experience is a personal attestation to the importance of home ownership. By allowing for the use of VantageScore 4.0 credit scores, the Federal Home Loan Bank of New York is broadening opportunity and ensuring that people who have been traditionally left out will have the ability to begin their homeownership journeys. Addressing racial homeownership disparities is a key step in bridging the wealth gap and I commend the FHLBNY for taking this important step."

"In partnership with Congressman Meeks, I worked with the Federal Home Loan Bank of New York to implement VantageScore 4.0, which will provide liquidity for mortgages that had originated on the basis of a credit score that includes alternative data like rent payments," Rep. Torres said. "The decision by the Federal Home Loan Bank of New York to recognize VantageScore 4.0 lays a critical foundation for broad base wealth creation in America. I have constituents who have reliably paid their rent in full and on time for decades, and yet none of their rental history is taken into account by conventional credit scoring. The inclusion of alternative data like rent payments in credit scoring is a simple, sensible policy change that will revolutionize access to credit for the lowest income families."

"The Federal Home Loan Bank of New York is grateful to Representatives Gregory Meeks and Ritchie Torres for their continued efforts to address housing affordability across New York and throughout our District, and for their focus on ensuring that the FHLBNY remains best-positioned to meet the needs of the communities we all serve," said José R. González, president and CEO of the Federal Home Loan Bank of New York. "We are excited to incorporate VantageScore 4.0 into our collateral practices, providing another tool for our cooperative to support inclusive housing and community development efforts throughout our region."

"The Federal Home Loan Bank of New York's decision to accept mortgage collateral backed by VantageScore is a significant step forward in expanding access to homeownership for creditworthy individuals, particularly in underserved communities," said Anthony Hutchinson, SVP of Government and Industry Relations of VantageScore. "By addressing the long-standing disparities in mortgage lending, this initiative supports our shared goal of narrowing the homeownership gap in communities of color while ensuring financial stability and inclusion for all."

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