Articles Tagged with ''Credit score''

The kids are not moving out, so homebuilders are moving in

As Bob Dylan first sang nearly 48 years ago: "The times, they are a-changin." And it certainly holds true in the homebuilding profession, where builders are revamping product offerings to serve families with multiple generations living under one roof. A few years ago, 20-somethings, armed with a decent FICO score and a steady job, could easily qualify for a mortgage. Now we find ourselves in a world where homeownership is marred by tighter underwriting guidelines and a lack of secure employment among potential homebuyers.
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Ability-to-repay proposal undermines mortgage origination advances

Considering the state of flux of the economy, jobs in particular, it's hard to find succinct wisdom in the Federal Reserve's proposal to modify mortgage origination under Regulation Z. In fact, it's hard to believe it will have a meaningful impact on mortgage originations, though the Fed obviously sees it the other way around.
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Introducing the Fifth C of Underwriting

Most of us know all too well the four Cs of underwriting: capacity, character, collateral, and credit. The four Cs have in many ways defined risk-based pricing on mortgages for decades, and are a convenient way to segment the myriad failures that led our economy to the precipice, as well. I can’t help but wonder, however, if it’s finally become time in this country to add a fifth C to the mix. Call it “calculation”—as in a borrower’s ability to understand basic math. Picture the following scenario:
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Cure Rates Plunge Among Prime RMBS, Fitch Says

A slower cure rate among delinquent loans erased improvements in the number of loans rolling into delinquency status among US residential mortgage-backed securities (RMBS), according to Fitch Ratings. Cure rates decrease as fewer delinquent loans return to current payment status each months. The prime cure rate slipped from an average 45% during '00-'06 to 6.6% today. Alt-A cure rates dropped to 4.3% from an average 30.2% and subprime cure rates fell to 5.% from an average 19.4%.
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