The Fair Isaac company has come up with a new credit scoring model. This comes as we have seen a record rise in defaults on mortgages by people with good credit. Not only are borrowers who previously were rated outstanding credit risks far more likely to default today, but many homeowners are defying long-standing credit industry assumptions by going delinquent on their first mortgage payments while continuing to pay their credit card balances and second mortgages on time. Strategic defaults, or walkaways, by high-score borrowers also have been an unexpected development. This new model changes how they evaluate consumers' risks of default. Whats interesting about his for those who are looking for a home is how the credit scoring model changes depending on what type of credit you are applying for. A mortgage credit score is different than a credit card credit score.
Read more. CLICK HERE
No comments:
Post a Comment