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Alternative For Credit Invisible Borrowers Finds Success

Posted on by TMN Editor
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…

Beyond FICO: Predicting The Ability To Pay A Mortgage

Posted on by TMN Editor
By KIMBERLEY HAAS Building credit is important for people who want to move into homeownership but some industry leaders are working to show lenders that there are alternatives to the traditional FICO score. A recent survey conducted on behalf of the technology company FormFree shows that of the respondents, 40% said that insufficient credit scores are one of the biggest barriers to homeownership. FICO scores are used by a majority of top lenders for their credit risk assessment needs. While 49% of respondents said their credit score should be considered during the home loan process, 53% would prefer that their ability to pay bills on time be factored in. FormFree released its alternative to the traditional credit score model in…