Stricter guidelines in lending carry partial blame for the widened gap between the average consumer credit score and the average borrower score, but tighter measures were employed to prevent future losses.
“I think the basic message that came out of Dodd-Frank, and I think the basic lesson that the industry learned was if you’re going to make mortgage loans, you better make it to people who have the ability to pay, and I think too that consumers have learned as well. I know a lot of people who were very badly damaged during the economic crisis have learned how to handle credit better,” said Ann Fulmer, chief strategy and industry relations manager at FormFree Holdings Corp.
This is an excerpt. Read the full story in National Mortgage News.
