Credit Score Facelift

first_img Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News, Secondary Market Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: First Steps to Tax Reform Next: Loan File Data – Truth or Fiction? Share Save Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] Experian Fannie Mae FICO Freddie Mac GSE TransUnion Urban Institute 2017-08-02 Brianna Gilpin Tagged with: Experian Fannie Mae FICO Freddie Mac GSE TransUnion Urban Institute Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Sign up for DS News Daily center_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Credit Score Facelift Data Provider Black Knight to Acquire Top of Mind 2 days ago August 2, 2017 1,582 Views Credit Score Facelift The Best Markets For Residential Property Investors 2 days ago About Author: Brianna Gilpin Governmental Measures Target Expanded Access to Affordable Housing 2 days ago As the years go by, technology progresses. New computers and cellphones, more efficient ways of handling paperwork—but what about credit reporting? According to the Urban Institute, who has written multiple times on tightness of mortgage credit, the mortgage market is taking on less than half of the risk it was in 2001 and less than a third of the risk in 2006. This can be attributed to the current credit score model, which is outdated.FICO 4, which was created in the late 1990s, is much less granular than the more recent models, FICO 9 and VantageScore 3, which is soon to be dated compared to VantageScore 4.0 coming out in the fall. FICO has versions 2, 3, 4, 5, 8, and now 9, so why is FICO 4 still the GSE requirement for originators to use?For example, student loan debt is included in installment debt in FICO 4 and first and second mortgages are seen as the same thing. The newer models also have a better wealth of information regarding student debt, which Urban Institute says has increased exponentially since the late 1990s. At the time, student loan debt was less than $100 billion, but as of Q1 2017 that number has risen to $1.34 trillion. In FICO 4 and VantageScore 3, student loans are looked at in a way that determines how it impacts the performance of other debt. Other reasons FICO 4 is outdated include issues concerning medical debt, and the consistency of information in reporting to more closely align the three models presently used—TransUnion FICO Classic 4, Equifax Beacon 5.0, and Experian/Fair Isaac risk Model v2.In a statement about how the GSEs use the FICO 4 family of models for screening and loan level pricing adjustments, the Federal Housing Finance Agency (FHFA) said in its 2016 Scorecard for the GSEs that they continued to work with Fannie and Freddie on implementing additional or alternative credit score models with the Enterprises’ businesses.“The Enterprises have considered other credit-score-related issues that can independently improve access to credit,” the statement said. “As described above, this includes the Enterprises work to enhance their automated underwriting systems to process loans for borrowers who do not have a history of traditional credit and, therefore, lack credit scores.”According to the Urban Institute, these credit scoring models that are used by the GSEs and lenders who sell to them need to be updated.“The updated models have already been developed; its time to conclude the ongoing studies and modernize the system,” Urban Institute said in the report. “Incorporating newer models into the mortgage origination process would allow the market to serve a greater number of creditworthy borrowers seeking to purchase a home.”Urban Institute isn’t the only one with this issue on their mind. Tuesday, Senators Tim Scott (R-South Carolina) and Mark Warner (D-Virginia) introduced bipartisan legislation that has received support from 20 consumer and industry groups to get the FHFA to create processes for credit scoring models to be validated and approved for use by the GSEs when they purchase mortgages. The current credit scoring model doesn’t;t take into account rent or utility payments and therefore hurts African-Americans, Latinos, and young people who otherwise would be approved.To see the full report, click here.To see the legislation press release, click here.last_img read more

Sizzling solar giveaway

first_imgThe Orchard is offering a solar deal which could save home buyers more than $100,000 over 20 years. Sean Cochrane from Super Green Solutions with Pene Slogrove and Shawn Boyd from the OrchardBUYERS in the masterplanned community The Orchard are being given the opportunity to drive down their future power bills by installing solar.Developer Elements North Queensland has teamed up with Super Green Solutions and their partner builders to offer The Orchard buyers a solar package.The deal includes panels, hot water system and a battery that will eliminate the majority of power bills.The promotion is estimated to save eligible residents about $112,000 over the next 20 years.Elements North Queensland director Shawn Boyd said the campaign was designed to further The Orchard’s sustainability credentials and help residents pay off their homes sooner. “When we were thinking about the campaign, we really wanted to help our buyers gain some real and meaningful benefits but also further our sustainability messaging,” Mr Boyd said.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020“We know that it is everyone’s dream to own their own home outright and this offer has the potential to save buyers around $112,000 to help them pay off their homes sooner. “But more than that, it contributes to building a stronger, more resilient and sustainable community – one that people can feel proud to be part of and that’s what we want to create at The Orchard.”The Orchard’s Solar Package campaign includes 5.4kW solar system, an Apricus solar hot water system and a 6.5kW Solax battery storage system valued at more than $21,450. Stage One of The Orchard has 34 fully services new home sites ranging from 1000sq m to 2400sq m, which are ready to build on now.The large-lot masterplanned community is on Darling Road in Jensen close to schools and shops and 1km away from the Ring Road which links to Townsville Hospital, Lavarack Barracks and James Cook University.Mr Boyd said the promotion means that people buying a home site at The Orchard with a participating builder won’t have to pay any out-of-pocket costs for the solar package. “With the cost of power continuing to go up, installing renewable energy solutions on your home sooner will save you a huge amount in to the future,” Mr Boyd said.For further information about The Orchard, please visit www.theorchardnq.com.au or call Penelope Slogrove on 0439 749 700.last_img read more

State officials offer Christmas shopping tips

first_imgINDIANAPOLIS –– Scammers are sure to be out in full force this holiday shopping season.Indiana Attorney General Greg Zoeller offers some tips to help protect shoppers from becoming victims of scams or identity theft.When shopping online:Research the online business you plan to purchase from and confirm their physical address and phone number in case you need to contact them.Consider using an online payment service, such as PayPal, or your credit card, which offers certain protections from fraudulent charges.Beware of emails or online offers soliciting hard-to-get items for unbelievably low prices. If it sounds too good to be true, it probably is.Make sure you are on a secure website when entering credit card information. A secure connection will have an “s” after the “http” web address and a closed lock icon.Exercise caution when making purchases from Craigslist, especially purchases that require meeting the seller in person. There’s a chance this could lead to a hold-up scam or the purchasing of stolen merchandise.Other shopping tips:Closely watch your credit card during in-store transactions.Monitor credit card accounts and bank statements over the holidays and report potential unauthorized charges to your card issuer.Besides using cash for in-store purchases, credit cards offer the best available consumer protection.When buying gift certificates or gift cards, be sure you fully understand the terms and conditions. Consider buying these products directly from the retailer rather than a third party.If using a layaway plan to make a purchase, get a copy of the policy in writing before you start making payments and find out whether you will get a full refund, store credit or charged a non-refundable service fee if you change your mind about the item. Layaway plans can contain hidden fees or refund restrictions.last_img read more

Maine Sluggers to host softball camp July 17-21

first_imgELLSWORTH — Maine Sluggers is set to host a summer softball camp July 17-21 at its facility in Brewer.Coaches Emily Gilmore, Rachel Martin and Ashley Tinsman will instruct players on hitting, pitching, fielding, catching, throwing, base running and more.Camp will be held from 9 a.m. to 4 p.m. July 17-20 and from 9-noon July 21. Attendees will receive a T-shirt and will have a pizza party on the last day of camp. At the end of camp, Maine Sluggers will name a “Camper of the Week,” who will receive free admission to next year’s camp.To register, contact Jenn Plourde via cell phone at 951-2250 or via email at [email protected] MaineSluggers.com. Registration is $250.This is placeholder textThis is placeholder textlast_img read more