12 CFR § 1254.4 - Requirements for use of a credit score.

---
identifier: "/us/cfr/t12/s1254.4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1254.4 - Requirements for use of a credit score."
title_number: 12
title_name: "Banks and Banking"
section_number: "1254.4"
section_name: "Requirements for use of a credit score."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "C"
subchapter_name: "ENTERPRISES"
part_number: "1254"
part_name: "VALIDATION AND APPROVAL OF CREDIT SCORE MODELS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 4511, 4513, 4526 and Sec. 310, Pub. L. 115-174, 132 Stat. 1296."
regulatory_source: "84 FR 41904, Aug. 16, 2019, unless otherwise noted."
cfr_part: "1254"
---


# 1254.4 Requirements for use of a credit score.

(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.