Blogging About Loans: Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.)

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

A New Model???

Oh, my! There's a new model coming to town! A new CREDIT SCORING MODEL that is!

We've been watching for FICO 08 for almost a year now, but now expecting it to roll out the first quarter of next year - that would be 2009!

What's it going to do? Remove "authorized user" credit history from an individual's credit profile. There's good news and bad news associated with FICO 08.

The good news: it will stop individuals from "renting" their good credit. That's right! There are actually people out there that RENT their credit to individuals with either no credit or bad credit in an attempt to raise poor or no credit scores to an acceptable level. Does that sound wrong to you? Me, too! And FICO 08 will put an end to that credit scam.

The bad news: spouses, college students, who have been added to accounts to help them establish a credit history won't be able to do that by being added to a credit card of their spouse or parents. So the "here today and gone tomorrow" expression should make my point. That's right! That credit history will just vanish. So get ready because we can only imagine what this might do to buyers caught in the middle of this scoring transition!

And with credit scores now being so closely tied to FICO scores, guess what that is going to do???

For more thoughts on this subject, go to: http://www.inman.com/buyers-sellers/columnists/dianhymer/will-shopping-multiple-lenders-hurt-credit#comment-8335

 


Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.

   www.ColoradoHomeLender.com

   ruthv@fairwaymc.com  303-881-7849.

 

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Comment balloon 5 commentsRuth Vogt • August 13 2008 04:42PM
A New Model???
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Oh, my! There's a new model coming to town! A new CREDIT SCORING MODEL that is! We've been watching for FICO 08 for almost a year now, but now expecting it to roll out the first quarter of next year - that would be 2009! What's it going… more
Attention Denver!
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The article below appeared in the Rocky Mountain News recently titled: Denver soars to No. 1 in home value increase. If you didn't happen to catch the article click here: http://www. rockymountainnews. com/drmn/real_estate/article/0, 1299… more
Update on DPA struggle with HUD!
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HUD was ordered on October 31, 2007 by a Federal Judge to hold the implementation of FR5087 which would have eliminated seller-assisted Down Payment Assistance on FHA loans allowing DPA programs to be used through February 29, 2008! FAQ Q How long… more
Down Payment Assistant Programs Fading Fast!
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There has been much controversy over HUD granting a 6-month extension to Nehemiah only and to no other Down Payment Assistance Programs. A closed door meeting with the counsel for HUD, (the justice department), and counsel from Ameridream discussing… more