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The Government wants Fannie and Freddie to start allowing alternative credit scores ASAP.



additional comments on
"Alternative Credit Scores on the Way Soon"

  1. jp says:

    Meltdown 2.0 coming in 2020.

  2. Lonnie Glessner says:

    Our home affordability crisis is a SUPPLY problem, not a demand problem. Creating more demand by lowering credit standards will only cause home prices to rise faster. We need to fix the supply problem. I think one potential solution is modular housing as it’s cheaper and quicker to build. Plus it can put laid off factory workers back to work with some training.

    1. SarcasmDetector says:

      Homes are still more affordable now than they were back in the 1980s. Crisis? What crisis?

  3. David Gonzalez says:

    Good point Lonnie. My brother put together a modular home in Northern Nevada, not a mobile home, and it is a solid house. Wondering if the cost to construct, ship, and assemble would still be cost effective for the borrower. Back then, 25 years, it was affordable.

  4. REORealtor1 says:

    There is a cash based mindset that is prevalent with Millennials. Many of them prescribe to a no debt philosophy. I see positive for getting an algorithm that is asset, income and payment history based. Now, the higher the credit score simply means the more debt you’ve used which equates to someone who will continue to rely on debt. Obviously this new scoring could go both ways.

  5. Carl T says:

    Maybe I’m missing something here, but the federal government relaxing standards was how we found ourselves in the hole we just crawled out of. The New York Times posted an article in September, 1999, predicting what they were about to do could create a train wreck and it did…

    “In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.”


  6. Billy Runyan says:

    On your marks…. ready, set, ok you already know the next part. We are not in control here at any level.. the word croney comes to mind on a fully governmental scale.

  7. Lisa LeQuire says:

    or 4) Build more affordable housing…new home builders need to step up and cities need to loosen building permit processes…..

    1. SarcasmDetector says:

      Builders don’t want to build ‘affordable housing’ because they don’t make enough profit. The inherent costs of construction regardless of size (planning, excavation, etc.) make it less desirable to build smaller homes, just like mortgage originators don’t want to handle loans that are under $100,000. They do just as much work (if not more) and make far less. Also, something like 33% of buyers wish they had bought a bigger home.

  8. Larry D. Shutes says:

    We existed for years without credit scores. The industry must learn how to read the information on the credit report again. FICO is one of the worse things accepted into the mortgage industry. Misnomer also, the F stands for FAIR. Ha, Ha, Ha ! ! ! ! !
    If one learns to read the credit report it is easy to make a common sense decision. Is that not the main criteria all mortgages must meet, make sense? If the client never had good credit, no mortgage. If they had good credit but went bad, what caused it to go bad? Is it still bad? No mortgage. Good, bad, fixed and the cause of going bad not an issue any more and now OK to good, give the them mortgage. Common sense credit underwriting. Scores do not take the whole picture into account. Oh, for the old days !!

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