HUD secretary Julian Castro recently told the National Association of Realtors that FHA is considering using alternative credit scoring methods to evaluate potential borrowers.
There are other scoring models such as FICO 9 and Vantage Score 3.0.
These models would expand access to mortgage credit.
The main difference in these new scoring models is that they put less emphasis on the impact of unpaid medical bills, and the effect of missed payments on debts that have subsequently been paid off is eliminated. They also incorporate utility and rental housing payments into their scoring calculation.
I will keep watching this for you, and let you know if it ends up happening.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett