Christy Moss, CMB, of FormFree: It’s Time to Stop Punishing Borrowers with Outdated Underwriting

Last year, the Federal Housing Finance Agency and the FHA launched initiatives to encourage lenders to use positive rental history as an additional factor in evaluating an applicant’s creditworthiness. This change makes credit evaluation more comprehensive and equitable, especially for first-time homebuyers transitioning from renting.

But there’s still more work to be done.

Other alternate data not typically found in credit reporting, such as cell phone and utility payment histories, can provide a more comprehensive picture of a borrower’s creditworthiness and help lenders make more informed decisions.

Read the full article in MBA Newslink.

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