News

New credit scoring could help home buyers

Borrowers won't be penalized for certain debts

The National Association of Realtors this week praised a decision by FICO, the Fair Isaac Corp. credit monitoring agency, that it will no longer penalize borrowers for certain debt-collection activities when calculating credit scores.

"This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores.," said NAR President Steve Brown.

"Since the housing crash, overly restrictive lending has been the greatest obstacle to home ownership," he added. "NAR will continue to support efforts to broaden access to credit for qualified home buyers." n

Comments

 +   Like this comment
Posted by LMP
a resident of Danville
on Aug 18, 2014 at 7:13 am

What are the "certain debts"? It would be nice to know any details. This article wouldn't pass a high school journalism class.


 +   Like this comment
Posted by Resident
a resident of San Ramon
on Aug 18, 2014 at 8:01 am

That makes a lot of sense. Give higher credit scores to people who don't pay their bills, so they can buy homes and NOT pay more bills. Good plan by FICO to just cause another bubble and financial crisis. It's not your god given right to have a high credit score. It's something earned.


 +   Like this comment
Posted by Julia
a resident of Alamo
on Aug 18, 2014 at 9:27 am

Hey Mr. Jeb Bing...how about the rest of the story. What certain debt collection activities will not count anymore. It would be nice to know.

Thank you, Julia Pardini from Alamo


 +   Like this comment
Posted by Dave
a resident of San Ramon
on Aug 19, 2014 at 7:49 am

It's not your god given right to have a high credit score. It's something earned. Perfectly stated, Resident!


 +   Like this comment
Posted by Honest Living
a resident of Danville
on Aug 19, 2014 at 6:56 pm

Credit score system is rigged against the average middle class citizen. This move will definitely open more lending doors for me.


 +   Like this comment
Posted by Robin Banks
a resident of Danville
on Aug 20, 2014 at 2:49 pm

Without more details about the specifics of these changes, it's impossible to tell whether these fears are justified. I'm guessing they're not, but does anyone have any further info?


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