Articles Tagged with ''Credit score''

Hey Millennials! Have questions about how your credit scores work?

Take this quiz to see how much you understand
The exact intricacies of a credit score continue to be one of the most confusing financial concepts for Millennials. This elusive three-digital number holds the power to some of the most financially expensive purchases in a consumers life, and yet according to a recent poll from LendEDU, young American consumers only have an intermediate understanding of that all-important number. See how well you perform against the stats.
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Senate to consider bill to end “FICO monopoly” at Fannie Mae and Freddie Mac

Bipartisan push continues to allow GSEs to use alternative credit scoring models
Earlier this year, a bipartisan group reintroduced a bill in the House of Representatives that would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use. Now, a companion bill is being introduced in the Senate as well, with the backing of Senators from both parties.
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TransUnion: December rate hike prevented 1 million Americans from paying their mortgage

Significantly lower than estimated 10 million Americans with a mortgage
After the Federal Reserve raised interest rates in December, TransUnion conducted a study showing more than 10 million Americans would be unable to absorb the increase to their mortgage payment. However, further studies showed only 1 million of them struggled to meet their payments after the rate hike.
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Two major changes make getting a mortgage easier

Millions will suddenly qualify for home loan this month
Two changes coming this month will allow millions of buyers to enter the mortgage market as FICO scores improve. About 6% of Americans will see an improvement to their FICO scores due to the first change, and the second will allow borrowers to take on more debt in addition to their mortgage.
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Do you use alternative data? This is how it opens door for millions of borrowers

Are you current with technology or still using traditional data?
Most mortgage industry leaders have made significant changes in their processes to keep current in the past few years and credit bureaus are no exception. Lenders are seeking creative methods to evaluate potential borrowers who lack credit history, and in some cases, identify consumers who will likely soon apply for credit and reach out to them directly. Here's how credit bureaus are meeting this challenge.
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Disappearing bankruptcies could start new wave of homebuying

Credit scores hit record high
Years after the housing crisis’ peak in bankruptcies, Americans are finally starting to see the filings drop off their credit report. Over the next few years, millions of consumers will see their bankruptcies drop off their report and their credit scores improve, allowing them to once again consider homeownership.
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CFPB fines Experian $3 million for lying about consumers' credit scores

Told consumers that purchased credit scores were same ones that lenders used
Experian, one of the nation’s three major credit reporting bureaus, misled consumers by telling them that the credit scores they purchased from the company were the same ones that lenders used to make credit decisions, the Consumer Financial Protection Bureau said Thursday. And for that deception, the CFPB is fining Experian $3 million.
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