Good news from Inman News, who brings us the following story on current trends in the world of loans. Sounds like there are new opportunities for some people that were having difficulties in securing home loans. This may open a few doors!
Online mortgage originator LendingTree’s monthly Credit Accessibility
Report shows the average accessibility score for U.S. borrowers rose
from 103 to 106 between July and August, indicating that borrowers had
easier access to mortgage credit.
The Credit Accessibility score is benchmarked at 100, using data from the full year of 2012, which is where it stood in June.
In what might be good news for Realtors but bad news for lenders, purchase
loans will soon account for a bigger piece of the mortgage loan
origination pie than refinancings, a recent report by Ellie Mae
suggests. As mortgage rates rise and the refi boom cools, lenders may
get more aggressive about competing for business from homebuyers,
loosening their underwriting standards in the process.
As home prices rise, refinance activity slows and government programs change,
potential borrowers are, in fact, finding it easier to gain access to
credit, LendingTree CEO Doug Lebda said in a statement. That’s because
lenders are easing up on down payment and credit score requirements,
while still adhering to conforming loan guidelines.
As private securitizations of mortgages not backed by the government start to
bounce back, “borrowers who didn’t qualify in the past may now have that
opportunity,” Lebda said.
Image courtesy of chokphoto at FreeDigitalPhotos.net
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