How Lenders Can Service Borrowers With Low Credit Scores

Poor credit score

There’s good news trending across the U.S. and it’s all about credit scores. According to a Washington Post article, the average FICO score is 704, which is a new record high. FICO’s vice president of scores and analytics, Ethan Dornhelm, said that Americans are “making more judicious use of credit” now that 10 years have passed since the financial crisis and housing bust.

Individuals with a FICO score of at least 704 will increase their likelihood of being approved for a mortgage. However, there’s still a chance that people with an average FICO score won’t qualify for a […] Read more

FHFA would ban VantageScore from Fannie Mae, Freddie Mac credit scores

WASHINGTON—The Federal Housing Finance Agency has proposed barring Fannie Mae and Freddie Mac from using credit scores developed by VantageScore over concern about conflicts of interest with the joint venture of Equifax, Experian and TransUnion.

The proposal is a blow to nonbank lenders that argue greater competition with FICO scores would safely open up the mortgage market to borrowers with limited credit histories.

In proposing a process to approve providers of alternative credit scores for use by Fannie Mae and Freddie Mac, the FHFA would also prohibit credit score models from any company that is connected with a consumer data provider, according […] Read more

Lending Loop and Equifax launch free credit scores for businesses

CANADIAN peer-to-peer lender Lending Loop has partnered with Equifax Canada to launch the country’s first free credit health and monitoring platform for small businesses.

The platform gives businesses and entrepreneurs access to free personal and business credit scores, reports and resources.

Lending Loop, which was Canada’s first-ever P2P lender, says […] Read more

FICO shows mortgage applicants how to improve their credit scores

A new tool offers advice for would-be home buyers hoping to qualify for affordable interest rates. (iStock)

If you’re seriously thinking about buying a home in the months ahead, you almost certainly know how important your FICO credit score will be in getting a mortgage.

And you probably know the score range you’ll need for the type of loan you want — somewhere in the low to mid-700s for a conventional mortgage eligible for sale to investors Fannie Mae or Freddie Mac, or a score in the mid- to upper 600s for a Federal Housing Administration-insured loan. […] Read more

New city goal: Boost credit scores of 25,000 Bostonians

Bad credit can wreak havoc on a person’s life.

Landlords and employers who run credit checks may pass over someone with a low score. Car dealers and mortgage lenders will charge higher interest rates. And forget about starting a business.

In Boston, an estimated 236,000 people, a third of the city’s residents, have either a poor credit score or none at all.

In an attempt to open more doors for those who are struggling, Mayor Martin J. Walsh on Wednesday is launching a credit-building program, with the goal of helping at least 25,000 Boston residents get a score of at least 660 — […] Read more

Today’s Headlines: Credit Scores Drop For Mortgage Refinances – WBRC FOX6 News

Opening Up the Housing Market

According to a recent report by The Urban Institute, mortgage credit is coming into reach for a growing number of Americans. The median credit score associated with home mortgages backed by primary mortgage purchasers Fannie Mae and Freddie Mac dropped from 742 to 725 between June 2016 and April 2017, resulting in the lowest median value since the housing crisis.

At the same time, Fannie and Freddie are altering one of the primary criteria for potential mortgage borrowers. Both agencies are increasing the acceptable limit on debt-to-income ratio (DTI), the percentage of your gross income devoted to […] Read more

Credit Scores Hit Record High as Recession Wounds Heal

Credit scores for U.S. consumers reached a record high this spring while the share of Americans deemed to be some of the riskiest borrowers hit a record low — a potential boon for lending and economic activity.

Consumers’ improving fortunes reflect falling unemployment and continued, if lackluster, economic growth. An added benefit: The passage of time since the recession and housing meltdown are helping household balance sheets.

In ever-growing numbers, the worst personal financial setbacks, namely foreclosures and bankruptcies, are falling off Americans’ credit reports. More than six million U.S. adults will have personal bankruptcies disappear over the next five […] Read more

How “Elites” With 800-Plus Credit Scores Use Their Credit Cards

The majority of Americans with a credit score over 800 can chalk up their successes to diligently managing their finances, not complicated tactics and hidden strategies only a select few can access. And the efforts to increase your credit score are likely worth the time, as borrowers with excellent credit have access to some of the best credit card sign-up bonuses and low mortgage rates .

The truth is, everyone can follow a few simple strategies to increase their […] Read more

New Changes May Improve Credit Scores For Millions

The three main credit reporting firms have decided to leave certain negative information off credit reports. The decision, from Equifax, Experian and TransUnion, would leave off many tax liens and civil judgements, and according to the Wall Street Journal, could boost credit scores for millions in the U.S.

Here & Now‘s Meghna Chakrabarti speaks with CBS News’ Jill Schlesinger (@jillonmoney), host of “Jill on Money” and the podcast “Better Off,” about why the change happened and what it means for consumers and lenders.

[…] Read more