As discussed in previous posts, it is crucial to educate your clients on the importance of their credit scores. Minimum score requirements are on the rise and recent news suggests we will not see any private programs for borrowers with scores below 620 and Loan-To-Value ratios above 90%. Consider the data from a report from Barclay's:
- Two million loans are currently delinquent
- 75,000 per month are falling behind
- 5.0% of all Fannie Mae mortgage loans are delinquent
- 3.6% of all Freddie Mac mortgage loans are delinquent
- Defaults are concentrated on loans with higher LTV ratios, lower credit scores and higher loan balances; delinquency rate is 18%
While the news is staggering, it provides further support to the value Real Finance Solutions bring to the table to help our clients. Education on the value of maintaining credit quality and avoidance of predatory lending will pay huge dividends in coming month.
The real estate purchase market is gaining steam and RFS Team members are well positioned to deliver valuable service and capture market share.
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