Mortgage lenders continued to ease underwriting standards in September as the refi boom fades and lenders become increasingly reliant on business from home buyers, according to the latest monthly survey by mortgage origination software company Ellie Mae Inc.
Average FICO scores for closed loans dropped to 732, compared with 734 in August and 747 in January. In addition, 31 percent of loans closed in September had FICO scores of less than 700, compared with 17 percent at the same time a year ago.
Purchase mortgages accounted for 58 percent of closed loans, up from 27 percent in January.
This is great news if you are looking to buy a house in Historic +Avondale or +Riverside. As banks see fewer refi opportunities, they will lower their credit scores so that more people will be able to qualify for a loan. So the "boomerang" people who were caught in a foreclosure or short sale, will be able to get into a home sooner. At least in theory. Every bank will be different. Call me for my recommendation on a mortgage lender!
#LizBobeck
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