Credit Requirements Loosening, Mortgages Becoming Easier to Obtain

Potential homebuyers are finally finding it easier to obtain a mortgage after years of needing to have nearly pristine credit. The initial crackdown came in the wake of the housing market crash, as lenders were hit with lawsuits and faced buybacks, and therefore tightened the belt on whom they lent money to. Now, however, that is all ... More

Officials Agree: Credit Scoring System Needs Improvement

The National Association of Realtors hosted a meeting of real estate and mortgage industry experts recently and found that many in attendance were in favor of a complete overhaul of the current credit scoring system, arguing that it’s essential for the future of the housing industry. “[It] needs to change to reflect how people live ... More

Report: Majority of Consumers Have Subprime Credit Scores

The Corporation for Enterprise Development released a new report on Thursday, which revealed that many Americans are still struggling to improve their credit, despite a growing job market and overall better economy. “In the world of consumer credit scoring, if you mess up, it’s a seven- to 10-year penalty,” explained John Ulzheimer, ... More

Alternate Lenders Gaining Steam Among Millennials

According to a new report by CNN Money, there is a current trend in the housing market toward alternate lending opportunities, especially as many individuals may not qualify for traditional loans. In the last week alone, two new companies - Lending Club and OnDeck Capital - went public, earning $870 million and $200 million respectively. ... More

Homeowners Earn $1.7 Trillion Equity Bonus

According to a new report by Zillow, homeowners in the United States earned a collective $1.7 trillion in additional  equity in 2014. The gains came even despite the fact that home prices slowed down dramatically over the past year. The report also noted that some homeowners tapped into the new equity already, nearly immediately taking ... More

U.S. Consumer Financial Protection Bureau Nabs Loan Companies for Fraud

Multiple loan companies were found to have engaged in illegal acts surrounding student loans and mortgages, the U.S. Consumer Financial Protection Bureau announced on Tuesday. According to MSNBC, "The CFPB found that some student loan servicers inflated minimum payments due, made illegal debt collection calls or charged unlawful late ... More

Refinancing Remains Tough in Current Housing Market

Ben S. Bernanke, former chairman of the Federal Reserve, revealed that attempting to refinance a home loan continues to be so difficult in the current market that even he got turned down from a refi request recently. "I recently tried to refinance my mortgage and I was unsuccessful in doing so," he said. "I'm not making that up." In fact, ... More

Jumbo Mortgages Getting Cheaper and Easier

In recent months, it has become cheaper and easier for individuals to take out jumbo mortgages – loans of $417,000 or more (or $625,000-plus in more expensive markets). Whereas a 20% down payment and a 700 credit score used to be required on all jumbo loans, some lenders are now accepting credit scores as low as 650 and just 10% down, ... More

On Tap: Lowered Credit Standards, Lesser Demand for Mortgages 

In the most recent Mortgage Lender Sentiment Survey conducted by Fannie Mae, the lending company found that attitudes are changing in the areas of credit standards and mortgage demand. According to Mortgage News Daily, large lenders are set to ease up on their credit standards for mortgages, while organizations of all sizes expect to see ... More

Lenders Unlikely to Use New FICO 9

Although the new FICO credit model, FICO 9, has been met with much optimism, it is unlikely that it will be used any time in the immediate future. The new model could boost individuals' scores by as many as 25 points by essentially ignoring paid collections and paying little attention to paid and unpaid medical debt. While realtors love ... More