---
kind: "section"
citation: "12 C.F.R. § 1254.4"
title: "12"
number: "1254.4"
heading: "Requirements for use of a credit score."
url: "https://uscodex.org/cfr/12/1254.4"
---

# §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.

## Notes

### Authority

Authority: 12 U.S.C. 4511, 4513, 4526 and Sec. 310, Pub. L. 115-174, 132 Stat. 1296.

### Source

Source: 84 FR 41904, Aug. 16, 2019, unless otherwise noted.