I am writing to invite you to cosponsor H.R. 123, the FHA Alternative Credit Pilot Program Reauthorization Act of 2017. According to a study by the Policy and Economic Research Council (PERC) and the Brookings Institute, approximately 50 million Americans
have insufficient information in their credit file to calculate a traditional credit score. Additionally, another 50 million people have credit scores that are possibly lower than they would be if non-financial payment data were reported to credit bureaus.
Unfortunately, the credit risk of borrowers cannot be adequately calculated with today’s standardized mortgage underwriting procedures. This is especially true for African-Americans, Latinos, low-income households, the elderly and those under the age of 25.