The Smart Team of NOVA® Home Loans

Time for FHA to Ease Credit – and Lender Angst

Posted To: MND NewsWire

Back in December the Urban Institute (UI) put a number on the much maligned but somewhat amorphous term “tight credit.” It maintained that, between 2009 and 2014, lenders failed to make about 5.2 million mortgages because of rigid underwriting standards. Another 1.1 million loans could have been processed in 2015 “if reasonable lending standards had been in place.” That would bring the UI estimate of MIA mortgages to 6.3 million over a six-year period. This week UI’s Laurie Goodman, revisits the issue on the organization’s Urban Wire blog. She says UI’s Housing Credit Availability Index now stands at 5.1 percent, less than half of its level in 2001. A large part of the problem in credit access is lending standards imposed by the lenders themselves that go beyond those required by Fannie Mae…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Source: Mortgage News Daily

%d bloggers like this: