Tag Archives: Mortgage Credit Access

Credit availability in the mortgage industry increased slightly in the fourth quarter, reversing a long-time downward trend over the last four quarters.

The risk of default is greater in some channels than in others.

Lawmakers suggest that additional credit scoring models would "foster competition and innovation in the credit scoring industry." But how much of a hold does FICO really have in that area?

“It’s important for all people to understand the effect of life milestones on their credit so they can put themselves in a position to reach personal and financial goals," said Ken Chaplin, SVP at TransUnion. "This survey reveals that many people, especially younger adults, may not be prepared for how certain events, such as marriage, buying a home or getting a car could alter their credit scores.”

The HMDA dataset has not kept pace with the mortgage market’s evolution despite being the leading source of information for the market, CFPB said; for example, the HMDA data does not include adequate information about loan features such as adjustable-rate mortgages and non-amortizing loans which helped contribute to the mortgage crisis.

Fannie Mae has built a strong and flexible technology organization in order to help the Enterprise more efficiently achieve its goals, which are to help provide people with access to affordable mortgage credit and to reduce risk to the taxpayer, according to a commentary from Bruce Lee, SVP and Chief Information Officer at Fannie Mae.

The higher risk for first-time buyers can be attributed in large part to risk layering, according to AEI. In March, 68 percent of mortgages for first time buyers had a combined LTV of 95 percent of higher and 96 percent of those mortgages had a 30-year term.

Following months of talk and speculation, both Fannie Mae and Freddie Mac announced on Monday they will begin allowing qualifying first-time borrowers to purchase homes with just a 3 percent down payment.