“the two largest mortgage banks, have now raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620”
I quit reading at this point. FHA raised the interest rates, not the banks....
His credibility is gone....
Tightening loan restrictions lol
FHA Annual Report: Still Writing Crap
Here it is folks....
Isn’t that special? FHA is still writing loans with 70% of them having LTVs over 95%. Worse, almost 30% of the total volume is being written on credit under a 680 FICO - “impaired” to some extent” - and 10.5% against credit between 600-640.
Sound underwriting? Well that’s open to question. What’s pretty certain is that 70% of those loans are at risk of going into negative equity with less than 10% decline in home prices in the next couple of years, because during the first couple of years you pay almost nothing in principal.
Then there’s SFDPA loans, which I have repeatedly called a screw job on the government - and which I maintain still are. From the report:
In full
http://market-ticker.org/akcs-www?singlepost=2266779
"...inflating the value of properties and convincing lenders to lend them money based on the fraudulent valuations. This is precisely what Maize did in his heyday, and Lehman Bros., one of the victims of the meltdown, was his willing (though perhaps unwitting) partner in this according to an FBI press release that announced his plea bargain. In it, he confessed to five felony counts in order to avoid a possible 98-year prison sentence..."
http://www.richardsilverstein.com/tikun_olam/tag/richard-maize-felon/
“”Mortgage lenders including Wells Fargo & Co. and Bank of America Corp., the two largest mortgage banks, have now raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620,” says Richard Maize. “
That is incorrect information. At least for purchase loans.
Minimum is 600 on a purchase loan.