Tag Archives: Credit Access

An analysis of HMDA data found that even though the rate of mortgages made to minorities is rebounding, the loan denial rates for this group remain high. Can alternative forms of credit scoring help them become homeowners?

The lingering effects of the Great Recession on borrowing is most evident in the mortgage sector, according to a new report looking at the effect of the financial crisis on consumer access to credit and the mortgage industry.

A record amount of Americans have access to credit through credit cards, auto loans, personal loans—and of course mortgages. See the breakdown here.

Though prices are up and mortgage rates are rising, housing is still pretty affordable—at least by historical standards. According to new data, the beginning of 2017 saw steady credit access, rising borrower FICO scores, and a decline in refinance transactions. The average FICO score of a first-time GSE buyer in January was 739.7.

Countercyclical policies will be crucial in future housing finance reform, at least according to a recent report from the U.S. Department of the Treasury.

Today, the GSEs and Ginnie Mae are the only companies securitizing loans in large numbers. The GSEs typically attract high quality, less risky loans within their limits, while Ginnie Mae mostly caters to minorities and first-time buyers.

The new rule would limit the maximum period for filing insurance claims with the FHA, which would limit access to credit. In addition the rule would also change policies concerning curtailment of interest and disallowance of certain expenses incurred by servicers.

The study also shows that both, consumers with student loans and without loans were affected by the changes in the economy and shifts in credit access. Consumers ages 18 to 29 with credit obligations like mortgages, credit card, and auto loans declined significantly between 2005 and 2012.

Millennials were found to have to have lower credit scores in 80 percent of the categories that make up traditional credit scores such as mortgage loans, auto loans, credit cards, and other installment loan payment histories because many young adults simply do not have any credit history with these financial products, with the exception of student loans.