Last week I asked all of you: Is the credit score a useless tool to determine risk? The real estate pros have spoken, the majority think (66%) think that the credit score is not the best tool to determine risk, while 34% still think that the credit...
I recently looked at two loan files, one had a 650 and one had a 750, which one was actually a riskier borrower (not the one with the higher score)? How can you now easily inflate your credit score? Is the score now useless? Why the huge changes in credit...
Last week I asked all of you will credit score shopping impact residential real estate? The real estate pros have spoken and as you can see from the chart, the overwhelming choice was that residential real estate would be impacted by the ability to shop for...
The Biden Administration took steps to enable less credit-worthy borrowers to qualify for mortgages to support the housing market. Now the Trump team is doing even more in the name of boosting home ownership and lowering costs for borrowers with a surprising...
The Biden Administration took steps to enable less credit-worthy borrowers to qualify for mortgages to support the housing market. Now the Trump team is doing the same in the name of boosting home ownership and lowering costs for borrowers. Why is the...
Consumer spending in the world’s largest economy has been so resilient in the face of stubbornly high inflation that economists and traders have had to repeatedly rip up their forecasts for slowing growth and interest-rate cuts. How are consumers still spending...
For the last 4 years, credit scores have been artificially inflated due to the omission of student loans (and lack of payments of student loans) leading to huge gains in credit scores. Unfortunately this trend is set to reverse this year. Look at this chart above...
You have to hand it to the Federal government, they are always working to solve problems that do not exist. Currently there is a new proposal from the federal government (via Freddie Mac) to insure second mortgages/home equity lines of credit similar to first...
According to everything I’ve read, the economy is humming along. Economic growth is good, the labor market is healthy, and a soft landing is all but inevitable. At the same time lenders are acting polar opposite of what we should expect. Why are lenders all the...
No this is not a joke, I had to read the recent Fannie Mae press release multiple times to actually believe what I was reading. Who would have ever thought that someone with a high credit score above 740 would be penalized for having a high score. Under a new rule...
Last week, the president announced an action that will save homebuyers and homeowners with new FHA-insured mortgages $1500 per year (assuming a 500k home), lowering housing costs for an estimated 850,000 home buyers and homeowners in 2023. On the surface, the change...
The federal reserve bank of NY recently published a report showing consumer debt jumping to the highest levels ever recorded with every category growing from mortgages, autos, credit cards, lines of credit, etc… Is some consumer debt better/worse than others for the...
The swiftness of the changes in the real estate market are astonishing, yet not unexpected. I predicted last year mortgage rates would top 5% and they already have come close. This has led to a 60% drop in refinances and a sharp reduction in sales. What do these...
Buy now pay later included on credit reports, impact on real estate financing Buy now Pay Later loans are a million-dollar industry and yet until now these loans were invisible to lenders. This is all changing as Equifax is now adding buy now pay later payments to...
The Urban Institute think tank says nearly two out of three loans made in 2019 would fail to meet at least one of the stricter standards lenders have imposed since March. Banks are tripping over themselves to be the first to hedge against future downside risks and...
We are still lending in cash! It is amazing that the federal reserve has flooded the markets with cash enabling banks to borrower at historic rates. Furthermore, banks are considerably healthier today than they were in 2008. Unfortunately, this is not translating to...
After years of increasing credit scores, FICO, the fico credit score used by the majority of lenders, has done an abrupt shift. FICO Score changes in how the most widely used credit score in the U.S. is calculated will make it harder for many Americans to get loans. ...
Last week, I woke up, checked my phone only to see it blowing up with alerts. I was getting alerts about random charges that were not mine from my credit card. Not the best way to wake up, but not surprising since it has been about 6 months since the largest hack in...
It’s like getting a free scoop of ice cream 😊 Experian is rolling out a new product called Experian Boost which will allow you to “instantly boost your credit score”. Experian expects over 65% of consumers will see a boost to their credit score. Will...
Although we are a hard money lender and do not rely exclusively on credit for our loan decisions (we are an asset lender focusing on the property), we do pull it on every borrower to verify identity, etc… There are three important recent changes that...
Phone: 866-634-1270
Email: Info@FairviewLending.com
