Skip to comments.Lenders Get Even More Strict With Borrowers
Posted on 10/02/2012 11:21:45 AM PDT by illiac
Mortgage rates continue to hit new lows, but the ultra-low rates are out of reach for many would-be borrowers who cant meet strict underwriting standards. And new national data suggests that underwriting standards for getting a loan are getting even stricter, too.
FICO credit scores on all new loans closed in August averaged 750. That is nine points higher than one year ago, according to a survey of about 2 million mortgages by Ellie Mae Inc., a mortgage technology firm used by many lenders. For home owners who refinanced in August, the average FICO score was 769even higherat Fannie Mae and Freddie Mac. That is up six points from last August. According to Fannie Mae and Freddie Mac, for home purchasers the average credit score was 763.
The developer of FICO scores, Fair Isaac Co., finds that 78.5 percent of all consumers have scores that fall between 300 and 749. Barely one in five, in other words, scores high enough to meet todays FICO score averages at Fannie and Freddie, The Washington Post reports.
(Excerpt) Read more at realtormag.realtor.org ...
Sounds like Hard Left political preparation for direct government intervention.
Anyone remember yesterday?
The same folks were telling us that greedy bankers and “Loose Money” caused the greatest financial crisis since the 1930’s.
When I sold my house in 99 in DFW I saw red flags.
When I bought it in 84 I had to have 15% down, when I sold it all the lady had to have was a pay stub. She got in for $400.00.
Yeh...I’m also seeing reports on MarketWatch that the banks are benefitting hughely from QE3....here we go again!
they’re tighter for now...if Barry gets re-elected, another EO will undo any “stringent” rules.
rates will go to 1.5% to re-inflate the bubble.
I’m also seeing in MarketWatch that the points being paid to fannie and freddie may go upsignificantly....
I drove by last year. Broke down basketball goal in the driveway. No grass, broken garage door window.
Bet she has the free phone.
I wonder if we should re-fi again.
stringent rules are racist.
You and I sold on the first wave, if you sold in ‘99. I sold in 2002. The “appreciation” (read: speculative premium) achieved by the home 2002 > 2007 was MORE THAN THE ENTIRE AMOUNT I SOLD FOR. I bot: $300K, 1995. I sold $500K 2002. It sold for $850K in 2005 and $1.2 MM in 2007.
it seems as if the elites are creating a “caste system” based on their control of credit scores.
I’m a an ER physician, jtried to refi my mortgage, but because I’m an “ independent contractor” no one will give me the time of day. It’s idiotic. I get 3 or 4 calls a day from recruiters, have never missed a paycheck, could work every day of the month if I wanted to kill myself.
This just sounds like whining spin to appease realtors who are having trouble making sales.
Banks were ordered into the sub-prime market, they got burned and are returning to sane lending criteria.
I remember the 90’s at Seafirst/BofA where the loan officers had to be ordered and trained to approve loans they would have laughed at the month before.
What really got me is when I met a guy who was trying to refinance a $110K mortgage on a house that is easily worth over a million....and they were giving him a hard time about the appraisal.
I think they’re already doing that.
There seems to be a sliding scale on qualifying credit scores depending on your “race”.
I did it over the phone and said I was black.
You are whatever race you consider yourself.