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Looking back, the housing industry is totally Scrooged

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Homebuyer credit worthiness highest in 12 years

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Current homebuyers credit worthiness is the highest in 12 years, with the median credit scores of mortgage borrowers rising 40 points since 2006, reported Federal Reserve Bank of Atlanta researchers from data received under the Home Mortgage Disclosure Act.

Potential homebuyers are also more accurate about their income for the first time in years since the housing market has taken a positive turn.

"Comparing home-purchase borrower incomes reported in the HDMA data with income reported by homebuyers in household surveys suggests that incomes on mortgage applications were likely significantly overstated during the peak of the housing boom," researchers reported.

The total volume of mortgages are still at an all time low since 1995, which reported 6.2 million loans. 7.1 million home loans made in 2011 declined 10% from a year prior.

Last year, 7,632 institutions reported their home lending under HMDA, which fell 4% from a year prior that continues to reflect a downward trend since 2006. The institutions included 4,497 banking, 2,017 credit unions and 1,118 mortgage companies. 

The proportions of loans denied in 2011 remained unchanged from a year prior at 23%. 

Click on graph below to open credit score findings in new window. 

cmlynski@housingwire.com

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