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HUD Secretary: FHA looking at alternative credit scoring models

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Mortgage Professional America | 02 Apr 2015, 08:41 AM Agree 0
"We'll look at every option that brings housing opportunities within reach of more Americans," he said at a symposium earlier this week.
  • Jburns | | 02 Apr 2015, 10:36 AM Agree 0
    Any person today, and for the last 40 plus years in mortgage lending, who are "qualified borrowers who are good credit risks" have been able to get a mortgage mortgage. It does not have today and it has never had, anything to do with minorities or immigrants. It has to do with reponsibility and work ethic. Not everyone should own a home, nor is it everyone's dream to own a home. That was the same mind set of the Clinton administration in the mid 1990's that began the ruination of Fannie Mae and Freddie Mac, that eventually caused the housing crises of 2007. The do gooders that continue to force people into mortgage mortgages and home ownership because they feel sorry for them, are not doing anyone any favors. The credit score system is not flawed, it is the people in power who assume everyone should own a home and can handle that financial responsibility.
  • Jacob | | 02 Apr 2015, 11:39 AM Agree 0
    The credit score system is flawed, one example is the way collection accounts are reported. An old collection account can be re-reported or sold to another collection company and this drops the score although it is not indicative of borrower's current ability to pay credit. In many cases borrower's had no knowledge of collection account. Or if borrower is able to pay collection, this causes a re-report of account activity which also drops credit score in the short term. It does not make sense for a borrower to pay off collection and have they score drop instead of stay the same or increase.
  • Pat | | 02 Apr 2015, 02:40 PM Agree 0
    This is great news! Now responsible people no longer have to pay medical bills either.
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