Lenders will soon be able to access information never before made available in financial reports.  Data analysis company CoreLogic has already introduced a new type of credit report which takes into account an individual’s rental payment history, evictions, child support judgments, applications for payday loans and payment history on utility and cellphone bills, to name [...]

BofA has maintained the conservative position (read: unchanging) of opposing leaseback arrangements with former homeowners. Along with the other Big Lenders, they sense they are creating a “moral risk” dealing with these delinquent borrowers. However, the bank purports to be looking into an alternative foreclosure program to rent back real estate-owned property (REO) to its [...]

This article reviews a newly-developed Fair Issac Company (FICO) analytics model which predicts a borrower’s likelihood to exercise a strategic default and revisits the financial advantages of a strategic default for a negative equity homeowner.

This article examines the credit score impact of a short sale versus a foreclosure, and advises a strategic default as financially advantageous for California’s negative equity homeowners.

As of January 1, 2011, loan applicants will be informed of how their credit scores affect the mortgage rates offered from a lender. The new disclosure, to be given to borrowers before they enter into a loan, is the result of a consumer protection effort initiated by lawmakers in 2003. After a negative action has [...]

Lenders eager to regain credit card business are issuing credit card offers to riskier borrowers with more frequency, but with lesser terms. In an effort to raise profits, many banks are classifying borrowers by other than just their Fair Isaac Corporation (FICO) score. Riskier borrowers who still receive credit card offers are categorized as strategic [...]

According to a survey by Lending Tree, 40% of homeowners obtained a single mortgage loan quote before buying their home and only 28% feel confident they got the best deal. Ninety-six percent said they compare prices when shopping for everything except a mortgage. Seventy percent said shopping for the best loan was frustrating and the [...]

In a delayed knee-jerk reaction to the mortgage meltdown and sub-prime lending crisis of 2008, lenders offering access to Federal Housing Administration (FHA) -insured loans are tightening their standards above and beyond those required by the federal agency. The FHA instituted minimum Fair Isaac Corporation (FICO) scores for the first time in October of 2010. [...]

This article examines a recent report published by the FHFA comparing the risk characteristics and performance of government sponsored entity (GSE) loans vs. private-label mortgage-backed bond (MBB) loans in the financial crisis of late 2008.

The Federal Housing Administration (FHA) recently launched yet another foreclosure prevention program to address the plight of underwater homeowners, called a ‘FHA Short-Refi Program,’ the ‘short’ standing for a process also known as a cramdown or strip-away of excessive loan balances. The new conditions allow upside-down homeowners who are current on their payments to refinance [...]