By KIMBERLEY HAAS
A case study by FormFree highlights how one of the nation’s largest independent mortgage lenders is serving the credit invisible.
Leaders at FormFree estimate that millions of adults in the United States are credit invisible or credit unscorable. That makes it difficult for these potential homeowners to qualify for a mortgage.
Manual processes exist to underwrite mortgages for these borrowers but they are seldom used because people without a credit score often assume they cannot qualify for a home loan and industry professionals may be unaware of their options, according to the case study.
To provide loans for qualified credit invisible customers, San Diego-based Guild Mortgage Company introduced a Complete Rate program in July of 2022 that…
Mortgage credit availability rose by 1.5%, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). This is its highest level since May 2021. The index analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool. The MCAI rose to 125.6, with the Conventional MCAI increasing 4.5% while the Government MCAI fell by 0.7%. The Jumbo MCAI rose by 5.8% and the Confirming MCAI rose by 2.6%. “Last month’s expansion was driven by a 4.5 percent increase in the conventional index, while the government index slightly decreased. Even with increases in seven out of nine months thus far in 2021, total credit availability is still around 30 percent less than it was in February 2020 before the…
Americans’ average credit score rose seven points from 2020 to Q2 2021, reaching 695, the highest average in more than 13 years, according to Experian’s State of Credit report. “The findings from this year’s report show something I’ve always believed: Americans are resilient, for the most part they make smart decisions in the face of adversity and they are agile in adjusting their financial habits when the environment or circumstances change,” said Alex Lintner, President, Experian Consumer Information Services. Consumers across all generations except Gen Z lowered their credit card balances and utilization rates. They also missed fewer payments. Minnesota held the highest average score, 726, while Mississippi held the lowest, 666. New Jersey had the highest number of credit…
Total household credit increased by $155 billion in the first quarter of 2020, driven primarily by an increase in mortgage balances, according to a report released Tuesday by the Federal Reserve Bank of New York. Total household debt increased to $14.3 trillion in the quarter, up 1.1 percent – and is $1.6 trillion higher than the previous peak in the third quarter of 2008. Mortgage balances rose by $156 billion in the first quarter to $9.71 trillion. Non-housing debt balances remained relatively flat, with the $27 billion increase in student loans and $15 billion increase in auto loans largely offset by a $39 billion decline in credit card balances and other forms of debt. The latest report captures consumer credit…
By Jim Perksie Historically low interest rates may not benefit many would-be homebuyers as the credit market is tightening considerably during the coronavirus pandemic. Redfin announced Wednesday that its Mortgage Credit Availability Index dropped 16 percent in March and is at its lowest level in five years. The index measures how easy it is to get a home loan. “Thousands of Americans who were priced out of the housing market due to the affordability crisis of the past decade might finally see homeownership as within reach, especially given historically-low mortgage rates. But unfortunately, they are now faced with another roadblock and may not be able to get a loan,” Redfin senior economist Sheharyar Bokhari said. “Home equity is the primary way for…
