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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

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Posted by Sandra
a resident of Highland Oaks
on Oct 16, 2014 at 8:00 am

The problems with long-term loans are real and still many people can not return taken money. I hope this law will work, because till now ordinary people with bad credit history had to take loans here Web Link. This service provides only short-term loans, and people have no opportunity to but a flat or to give money to their children on college. I thin only solvency of the client has to be revised during the approving the application for the loan.


 +   Like this comment
Posted by I pay my debts
a resident of Another Pleasanton neighborhood
on Oct 16, 2014 at 8:59 am

Great, another way for people who have no ability or intention of debt repayment to get loans that we taxpayers will end up subsidizing. You buy a home you agree to the full debt, if you don't pay it back you should be taxed on the forgiveness. Why should the deadbeats who buy the property and then cry about it being underwater (hello? did someone hold a gun to your head to buy it in the first place?) be allowed to have the debt reduced or forgiven and then walk away with no tax owed and the ability to go out and do the same thing again.

If you think these people learn from their financial mistakes I can tell you about a person high up in city government in the Bay Area (NOT Pleasanton BTW) who has defaulted on three homes so far! Not because she cannot make the payments, only because she overpays for the houses and when they go underwater she walks away. Without a scratch on her credit record.


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