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Douglas Zeller's Blog

By Douglas Zeller | Broker in El Dorado County, CA

Will Lending Standards Loosen Up This Spring?

Lenders tightened up their underwriting standards the last few years, making it difficult for even creditworthy buyers to get approved for a home loan. Federal Reserve Chairman Ben Bernanke said at a press conference last week that the tightening of the mortgage market “has gone too far.” 

But recent data released by Ellie Mae shows there may be some improvement in the loosening of credit. 

“The credit box may be expanding,” says Jonathan Corr, Ellie Mae president and CEO.

In its latest data release, Ellie Mae found that the average FICO scores for approved loans has started to drop — a 767 FICO average for all of 2012 compared to 761 FICO average for all approved conventional loans during February. 

More information at source: “Encouraging Signs That Mortgage Credit Is Easing,” Inman News (March 26, 2013)

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