A recent story in HousingWire detailing Kroll Bond Ratings Agency’s examination of loans through the fourth quarter quoted Urban Institute’s Laurie Goodman, who argues that credit remains too tight for many borrowers.

Her thesis is that tight standards are what holds back mortgage loan growth.

Indeed, just earlier Thursday, FICO (FICO), LexisNexis Risk Solutions and Equifax (EFX) released the official details to the new pilot program that was first reported on Wednesday, potentially opening the door to help millions of borrowers secure financing for a home.

The three firms are working together to create a pilot program that will allow 12 of the largest credit card issuers in the U.S. to use alternative data to identify creditworthy individuals who would otherwise be unlikely to obtain traditional credit.

After the pilot program is complete in the coming months, FICO expects to make the score based on alternative credit data available to more lenders later this year. 

Several real estate trade groups spent a day this week discussing the challenges that credit standards pose for access for some would-be borrowers and alternatives to traditional credit scoring.

A keynote speaker, Secretary of Housing and Urban Development Julian Castro, told the National Association of Realtors, the Asian Real Estate Association of America and the National Association of Hispanic Real Estate Professionals he wants to widen the circle of opportunity for responsible families by making homeownership more affordable and accessible. 

Goodman’s comments prompted Logan Motashami, a loan officer and prolific blogger/Tweeter, to question Goodman’s central assertion and her credibility.

Laurie Goodman of Urban Institute notes that “the FICO scores required by lenders in making [1-4 family] loans have increased significantly—thereby decreasing the number of loans made to potential buyers with credit scores under 720.”

This is a flat out lie and she has been dead wrong on this topic for years! She always gets away of spreading such false lending concepts!

That flowed into a series of tweets to Goodman, after she posted this:

What followed got epic.