The future of credit scores as an underwriting tool may hinge on the extent that credit-based underwriting has a disparate impact on minorities, according to comments made at a House Financial Services Subcommittee hearing last week.

Meanwhile, the growing power of Democrats in Congress who oppose credit scoring was underscored when the Federal Trade Commission disclosed at the hearing that it will use its subpoena power in gathering data for a new study on the issue.

The agency published a notice in The Federal Register last week of its plan to require nine homeowners insurers to provide all available data to the agency. That step, taken under pressure from House Democrats, was criticized by Republicans at the hearing, while a representative of the industry also voiced concern.

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