Thursday, August 21, 2014
New FICO Scoring System
In a recent article published by the National Mortgage Professional Magazine, it was announced that the FICO scoring system will be restructured in order to help borrowers qualify for loans more easily. One of the primary differences we will see is that median FICO score for consumers whose only derogatory references are unpaid medical debts will increase by 25 points. It has been determined that medical collections should have a lower impact on the score since in most cases it is not commensurate with the credit risk they represent, nor the borrower's ability to repay a mortgage loan.
The FICO Score 9 also supports a lender's desire to better assess the risk of a consumer with a limited credit history. Most of the mortgage lenders we have spoken with believe this will open up the housing market to a greater number of qualified buyers. The system will run more efficiently and consistently, and will more precisely assess new applicants.
If you would like specific information about local mortgage rates and trends, please call us anytime. We have a full time lender on our team who always welcomes calls from our prospective customers.
Thank you, and make it a great day!
The Naples Real Estate Blogger