Feb 17 2016 Thinking Outside The Box On Home Loans

Dated: 02/17/2016

Views: 64

Image title

Here is information about where the home loan industry is trending. It's time to consider buying and not renting!!

TransUnion, one of the three major credit reporting companies in the United States, turned the lending world on its ear in the summer of 2015, suggesting lenders increase volume through a monumental change – eliminating the traditional credit score.
You see, TransUnion noticed something interesting about young people and their ability to repay loans.
Millennials are actually seeking home loans at a higher rate than Gen-Xers (between 36 and 50) and Baby Boomers (over 50), but they are also being turned down at an exceptionally high rate.

But TransUnion's data suggests the typical Millennial borrower is low risk. The study found that younger consumers were a surprisingly responsible group, and those with student loans were no worse at managing their debt than people without it.
The youngest student debtors who also had credit cards and auto loans were actually less likely than rest of their age group to be 60 or more days late on payments.
The problem, the study suggested, was the entrenched credit scoring system of the Fair Isaac Corporation (FICO). Used since 1995 by both Fannie Mae and Freddie Mac, the system is heavily reliant on a borrower's record of previous monthly credit payment, rendering many young adults "credit invisible."
Today, 63 percent of people between 18 and 29 do not own a credit card, either from a bank or a store.
There are several reasons why: Banks have tightened credit availability since the Financial Crisis, and new laws restrict offering credit cards to people younger than 21.
But more than anything else, many young adults just aren't interested in credit cards: Seeing the problems of purchasing on credit, many choose to make no monthly payments at all, save rent and student loans. They are therefore more likely to have FICO scores under 660 than older groups.
So how surprising is the recent announcement that online lender SoFi is doing away with FICO scores, calling them "flawed and outdated?" 
SoFi will continue to offer its mortgage and other loan products to customers considering only employment history, track record of meeting financial obligations, and monthly cash flow minus expenses.
Alternative credit data from wireless providers, marketplace, or other online lenders might be more useful in predicting credit worthiness.
These age-based cultural differences are becoming increasingly integral to the home lending and real estate industries. Learning to market and sell them in a language Millennial consumers understand is key to the housing market's ongoing recovery.

#TopRealEstateAgent   #PhoenixAreasBestRealtor.com  #Amylaidlaw.com  #AmyLaidlaw  #HomesForSaleInMesaAZ   #HomesForSaleInChandlerAZ   #HomesForSaleInGilbertAZ #HomesForSaleInPhoenixAZ  #HomesForSaleInQueenCreek  #HomesForSaleInSanTanValley   #HousesForSaleInMesaAZ   #HousesForSaleInChandlerAZ   #HousesForSaleInGilbertAZ   #HousesForSaleInPhoenixAZ  #HousesForSaleInQueenCreek  #HousesForSaleInSanTanValley   #BalancedLifeSolutions.Net  #InspirationalMessages  #LawOfAttraction  #Meditation   #Lifecoaching  #ValueOfMyHome  #Reiki  #ReikiMaster  #ReikiCertification

 #GetRidOfPainNow #GetRidOfHeadachesNow  #GetRidOfAnxietyNow #GetRidOfStressNow #GetRidOfSicknessNow

#GetRidOfDiseaseNow #GetRidOfDepressionNow #GetRidOfNeckPainNow


#SleepBetterNow #LifeCoach #Balance #PositiveThoughts  #Gratitude  #Forgiveness

Blog author image

Amy Laidlaw

About Me BIOGRAPHY ~Seller’s Success Story~ How my client received 23% more for his home than his anticipated list price! I suggested adding $1,700 for granite counter tops in the kitchen ....

Latest Blog Posts

Apr 25 2018 31 Reminders To Make Being Calm Your Super Power Part 1

With the premiere of two Marvel Superhero movies in the next few weeks, it seemed only fitting to let you know that you don't need radiation, super serum , or special armor to have super powers.

Read More

Apr 24 2018 It All Matters In The End

In the end, all the small things you do make a big difference. Life isn’t about a single moment of great triumph and attainment. It’s about the trials and errors that slowly get you there—the

Read More

Apr 23 2018 Priced To Sell And Worth A Look

This beautiful property is price to sell! It would be worth your time to take a look at it, as it could be your next new home!Here is a virtual tour to show you more of its amazing features

Read More

Apr 20 2018 New On The Market And Looking For You

Here is another gorgeous home, new the market  looking for a new owner. Could this be your next home?Click here for virtual tour of this gorgeous property.Contact myself or my team for

Read More