US home builders in recent months began walking away from their revolving credit facilities, choosing to rely instead on cash and other equivalents held on their balance sheets for short-term liquidity, according to a study by Fitch Ratings.
Builders snubbing short-term credit and voluntarily exiting their revolving credit lines indicates a general move toward conservative borrowing practices as the US banking and financial system continues to reel with loan-related losses.
“Nearly every part of the real estate process has been transformed by technology except for home financing. Getting a mortgage is still manual, frustrating and confusing,” said Nick Stamos, CEO and founder of Sindeo..
Legacy insurers are headed toward solid ground, with some experiencing their first full year of profitability since the housing crash. New entrants, meanwhile, are raising capital, entering the fray and gaining market share. Read More
First, I’m not suggesting totally yanking FICO or Vantage Scores or anything like that. What I am recommending is the adoption of other models that would equally, or even more effectively, determine who can repay a loan. Read More