Thursday, August 3, 2017

Debate Over New Credit Scoring; Rates Lowest in a Month; ARMs Getting Easier

Within hours of each other Laurie Goodman, co-director of the Urban Institute's Housing Finance Policy Center, and Melvin Watt, Director of the Federal Housing Finance Agency, expressed quite different views on the need for an immediate change in the credit scoring models used in most mortgage underwriting. Goodman, writing in the Policy Center's blog, talks once again about the tight credit box for mortgage financing. The mortgage market, she says, is taking less than half the risk it took in 2001, a period of reasonable credit standards, and less than a third of what it took in 2006, when standards were what proved to be disastrously loose. The tightness is greatest regarding credit scores. UI attempted to quantif y this a while back and updates that exercise it in this article. Had the credit

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/3/2921

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