The average FICO score on closed loans has fallen to its lowest in nearly two years
Credit scores for borrowers have fallen to nearly two year lows, according to a recent report.
The average FICO score for loans closed in April 2013 fell to 742, the lowest since August 2011, when the figure was 741.
FICO scores fell in both purchase and refinance loan categories. In the purchase category, FICO scores fell to 697 and 711 in the refinance category, figures also not seen since August 2011.
Overall, credit requirements are easing, the report said. Loan-to-value ratios for closed loans increased to 81% in April 2013 from an average of 79% in 2012.
Data was taken from Ellie Mae’s Origination Insight report released Tuesday. Ellie Mae tracks approximately 20% of all US mortgage originations and tracked about 3m loan closings in 2012.