Credit Scores

Homebuyer Credit Scores Hit Multi-Year High

Posted on by TMN Editor
Average homebuyer credit scores soared to their highest point since 2018 in March, according to Optimal Blue’s March 2024 Originations Market Report. The average score hit 737, an all-time high in Optimal Blue’s data, which dates back to January 2018. Scores for FHA borrowers also hit 6-year highs, clocking in at 677 in February and 676 in March. VA and conforming loan scores soared to highs not seen since 2021. “Driven by rising interest rates and home prices, we’re witnessing the highest average homebuyer credit scores in years,” said Brennan O’Connell, director of data solutions at Optimal Blue.  “This unprecedented level of creditworthiness among purchasers is largely a result of the affordability issues borrowers face in today’s housing market, with…

FHFA Approves GSE Use Of Classic FICO

Posted on by TMN Editor
The Federal Housing Finance Agency announced Tuesday that it had validated and approved the use of the Classic FICO credit score model by Freddie Mac and Fannie Mae as work continues to assess adopting more modern credit score tools. In February, FHFA sought input on new credit score models, but Tuesday’s announcement gives FHFA time to sort through the different models. FHFA said it expects Fannie and Freddie will take “an additional year to complete the validation and approval process of the remaining credit score models submitted in response to the solicitation.” “The validation and approval of Classic FICO by the Enterprises allows them to continue supporting the mortgage market while assessing more modern credit score models that were submitted…