Wednesday, April 18, 2018

Underwriters Should Consider Rent History; Freddie on "Shopping"; Mortgage Apps Surge

Access to credit remains tight and the Urban Institute (UI) blames in part that lenders are not measuring the credit risk of borrowers appropriately. Laurie Goodman and Jun Zhu, writing in UI's Urban Wire blog say that paying rent is the most significant financial commitment of most renters. Yet, while credit reports often ding renters for missing rent payments, the performance of good tenants doesn't enter into their credit scores. Considering a borrower's rental pay history , this could be done via bank statements, to the mortgage qualification process, they say, would make assessing renters' credit risk easier. It could also expand access to homeownership among a significant portion of the nation's population. The authors analyzed rental payment histories to see how they might impact mortgage

from
http://www.mortgagenewsdaily.com/reports/newsletter/2018/4/18/3323

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