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Posts Tagged ‘credit scores’

50 States Ranked by Income, Credit – Manufactured Housing Marketers Data, Cheet Sheet

September 4th, 2018 Comments off

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While there could be a debate about the ranking of the 50 states by which is the hardest working, a far clearer picture emerges on the topics of ranking states by income and credit.

 

The reason?

Facts about income and credit scores are just facts.

HouseholdIncomebyStateByPercentageGroups2017ManufacturedHousingIndustryDataResearchReportsMHProNews

But the criteria selected by Wallet Hub, which certainly uses some objective data, nevertheless mixes metrics into an amalgamated score and ranking that some could certainly debate.  It’s interesting, and worth noting, because others are looking at it.  ICYMI, that report – which includes recent manufactured housing data, is linked below.

http://www.mhmarketingsalesmanagement.com/blogs/daily-business-news/2018s-hardest-working-states-in-america-how-does-your-state-rank/

Credit Scores

 WhatIsGoodCreditExperianDailyBusinessNewsMHProNews

Meaning of Credit Scores

FICOScoresExperianCreditImpactDailyBusinessNewsMHProNews

Scores by State Per Core-Logic

AverageCreditScoreByStateOnMorgageLoansMHproNews

What data like this reflects is that manufactured housing professionals routinely report lower credit scores applying than those shown. That said, Triad Financials’ credit profile reflects higher credit scores than several of their counterparts. Good credit – as well as cash customers – are attracted to manufactured housing. But most retailers and communities need to step up their marketing and sales efforts to attract those better qualified buyers.

The Daily Business News on MHProNews noted on Saturday some of the reasons and considerations for manufactured home retailers and communities to consider factors like income in your local market(s).  That county-level report, is linked below.

MH Intelligence for Your Business – Incomes by U.S. Counties, How Do Your Counties Compare?

Watch for some data and analysis in the days ahead that could prove eye-opening, and uncomfortable, but useful for manufactured housing professionals and investors.

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Note that some of the sources – which are deemed reliable – came to different conclusions.  But that’s possible for potentially valid reasons.  For example, Experian’s data is presumably reliable for their own data pool, but other sources may have a different yet still accurate pool they are measuring from.

That’s a look at research and “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third party images and content are provided under fair use guidelines.)

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FHFA, Invisible Credit, and Change$ to Fannie and Freddie

August 8th, 2017 Comments off

A bipartisan pair of lawmakers – Senator Tim Scott, (R-SC), and Senator Mark Warner, (D-VA) – have come together to create a bill that aims to increase homeownership through reform of credit guidelines for those with “invisible credit.

Invisible Credit” is when individuals or families have paid their bills – like utilities, phone, and internet – on time. But they still don’t have any – or a good – FICO credit score.

  • FICO scores are typically based on such items as: credit card and loan debt and repayment,
  • the degree of credit utilization,
  • length of credit history,
  • and outstanding debts,
  • among other factors.

Such as change would allow the Federal Housing Finance Agency (FHFA) to use non-traditional credit scoring models to determine creditworthiness of applicants.  That would increase the numbers who qualify for loans, and allow the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac to approve these types of loans, per American Banker.

I’m focused on encouraging sustainable homeownership over a simple homebuyership. One way to do so is the [Federal Housing Finance Agency] updating the accepted credit scoring models of the GSEs,” Scott said at a Senate Banking Committee hearing last month. “If a family pays their utility bills or their phone bills on time for a decade, it ought to count towards their ability to have a home.”

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Senator Sherrod Brown (D-OH). official photo.

Providing financing for more middle-income people who can pay their mortgage is so important,” Sen. Sherrod Brown, D-OH, “because there is such a terrible housing shortage for moderate-income people.”

MH Industry Professionals, Interests and Concerns

That there are manufactured home industry professionals – including lenders – who are open to providing more moderate-income or even low-income Americans with access to home loans through alternative credit is a step in the right direction.

But expanding access to chattel loans is the current hot-button topic in manufactured housing.

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Mel Watt, credit, AP.

According to HousingWire, though the Scott-Warner bill has been introduced and appears to have some support, FHFA Director Mel Watt says that anything changing before 2019, would be a “mistake.

Watt vows that no changes will go into effect before then.

First, based on the overwhelming feedback we have received from the industry, it is clear that it would be a serious mistake to change credit scoring models before mid-2019 when the Common Securitization Platform is fully operational and the Enterprises implement the Single Security,” Watt said.

He added, “For this reason, any credit score model change would not go into effect before 2019 even if I announced a decision today.”

Second, we believe that, regardless of the decision we make on credit score models, the short term impact on access to credit will not be nearly as significant as was first imagined or as the public discourse on this issue has suggested,” says Watt.

Credit scores are only one factor the Enterprises use to evaluate loan applications and the Enterprises currently use the same or even greater levels of credit data in their underwriting systems as the credit scoring companies use.”

So while members of Congress attempt to move in one direction, the FHFA intends to hold off on that for at least another two years until mid-2019.

Both groups admit that in order to determine creditworthiness fairly under guidelines other than the FICO score that there will need to be more data, which will take time to collect.

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Adding more credit scoring models to the market would require some data validations … time periods that adds costs,” Brenda Hughes, senior vice president at First Federal Savings Bank of Twin Falls in Idaho, said during testimony at a Senate Banking Committee hearing last month.

We think it’s very important for them to begin updating their credit models to take advantage of those other sources, which we think will widen the net of folks who become eligible for conforming mortgages” purchased by Fannie and Freddie, said Charles M. Purvis, president and CEO of Coastal Federal Credit Union in Raleigh, N.C.. # #

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JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to Daily Business News for MHProNews.

 

 

As More People Live on the Edge, Payday Lenders Provide Valuable Service

May 14th, 2016 Comments off

payday_loans___istockphoto___creditAccording to Neal Gabler, writing an article entitled The Secret Shame of Middle-class Americans in the May issue of The Atlantic, a Federal Reserve study from a year ago reports that nearly half of Americans would be hard-pressed to come up with $400 in an emergency—and he includes himself in that category. He says bad credit is pervasive, eleven percent of the U. S. adult population are credit invisible and 56 percent have credit scores below 700.

Incomes are not keeping up with the cost of living, especially in health care and education, causing more people to live on the edge. William M. Isaac tells MHProNews in americanbanker the payday lenders provide an essential service, and the Consumer Financial Protection Bureau’s (CFPB) upcoming rules on short-term lending could have unintended consequences for millions of people facing financial emergencies.

The CFPB is proposing lenders do an ability-to-pay assessment because of concern over improperly formulated credit contracts that could lead to the loss of a car, or creation of a cycle of debt.

However, the CFPB may exempt some loans from closer scrutiny if the payment is no more than 5% of gross income. But Isaac points out gross income does not take into account household expenses, other debt or other monthly expenses. He suggests using the Credit Card Act of 2009, whereby lenders have to utilize “reasonable written policies and procedures to consider the consumer’s ability to make the required minimum payments under the terms of the account based on a consumer’s income or assets and a consumer’s current obligations.”

Without access to some form of emergency credit, consumers could lose their cars, jobs and essential services. But noting the advance of big data innovation and machine learning technologies, Isaac is certain that more credit products will be geared toward the nonprime customer market, a demographic that seems to be growing.

In the worst case scenario that might result from payday lenders being driven out of business, MHProNews understands people who cannot obtain legal credit may turn to criminal behavior. ##

(Photo credit: istockphoto)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

NAR releases 2013 Profile of Home Buyers, Sellers

November 20th, 2013 Comments off

Highlights-NAR-HBS-2013lawrence_yun,_nar_chief_economist=realtor-mag-realtor-org-The National Association of Realtors (NAR) recently released its 2013 Profile of Home Buyers and Selelrs. Saint Louis Today tells MHProNews the American Dream of home ownership is alive and well. Sixty-six percent of buyers surveyed are married couples, the highest percentage since 2001. The percentage of single home buyers dropped to 25 percent, which is a drop of 7 percent in the last two years. “Single homebuyers have been suppressed the last three years by restrictive mortgage lending standards, which favor dual-income households that are more likely to have higher credit scores,” said Lawrence Yun, NAR chief economist, about the survey results. “Affordability conditions remain favorable in much of the country, but consumers need access to safe and sound financing, particularly the 30-year, fixed-rate mortgage and with low down payment options for first-time buyers.”

You can download an abridged version of the NAR 2013 Profile of Home Buyers and Sellers here. ##

(Photo credit: RealtorMag)

Mortgage Credit becoming more Available?

November 12th, 2013 Comments off

In its Mortgage Credit Availability Index, the Mortgage Bankers Association (MBA) reports the index edged up 0.7 percent to a score of 111.5 in October after declining in Aug. and Sept., suggesting mortgage credit may be loosening. Ellie Mae’s president and chief operating officer, Jonathan Corr, says, “ We have seen a significant rise in the percentage of loans with a credit score under 700.” Thirty-two percent of all loans closed in Sept. 2013 had credit scores under 700, compared to less than 17 percent a year ago, as housingwire informs MHProNews. Corr adds credit may be loosening, even if it is incrementally, “but we are going in the right direction.”

(Image credit: housingwire)

Can Social Networks Impact Credit Scores?

August 28th, 2013 Comments off

facebook-logo-posted-daily-business-news-manufactured-home-marketing-sales-management-mhpronews-comLenddo, Kabbage  and Kreditech are among the companies that use Facebook, PayPal, eBay or Amazon to determine if people without traditional FICO scores may be credit worthy.  CNN Money tells MHProNews that some of these start ups are finding that while traditional lenders steer clear of no/low credit score customers, that social connections can be a good indicator of a person’s creditworthiness. “It turns out humans are really good at knowing who is trustworthy and reliable in their community,” said Jeff Stewart, a co-founder and CEO of Lenddo. “What’s new is that we’re now able to measure through massive computing power.”  German Kreditech states it uses up to 8,000 data points when assessing an application for a loan. The lesson in part is that what you do online with social networking matters.  ##

(Image Credit: Facebook Logo)

FHA-backed Loan Numbers Rise

April 1st, 2013 Comments off

HousingWire informs MHProNews that in January, 2013 applications for loans insured by the Federal Housing Administration (FHA) rose to 147,509, an increase from 127,057 in December and up from 126,835 January 2012. In January the FHA insured 134,461 single-family homes, an increase from 113,856 the prior month and 102,011 from the previous January totals. The average January 2013 mortgage was $185,353. Also in January, borrower credit scores remained high—scores of 695 for home-purchases and 701 for refinancings. At the same time there were 738,109 serious delinquent loans, resulting in a default rate of 9.6 percent for the month.

(Image credit: Federal Housing Administration)

Ten Million Borrowers Remain Eligible to Lower Rates

January 14th, 2013 Comments off

NationalMortgageNews tells MHProNews Lender Processing Services (LPS) estimates 2.6 million Fannie Mae and Freddie Mac loans may yet be eligible for financing through the Home Affordable Refinance Program (HARP). 50 percent of these have credit scores of 720 or above, including 670,000 with interest rates above six percent. Since the inception of the HARP 2.0 program Jan. 2012, 790,600 HARP refinances have been complete, including 160,400 GSE loans with loan-to-value ratios above 125%. Mortgage and analytics firm LPS estimates another ten million borrowers may be eligible for traditional financing.

(Image credit: realtor)

CFPB Issues New Mortgage Rules

January 10th, 2013 Comments off

The long-anticipated set of mortgage rules, including the qualified mortgage, promised by the Consumer Financial Protection Bureau (CFPB) have finally been released, according to CNNMoney. Designed to correct the lax underwriting practices that led to the housing bubble fiasco, the new rules require documented financial feasibility of repaying the loan has to be fully determined by the lender before issuing the loan—income, debts, assets, credit scores, ability to take care of the home, etc. In exchange, lenders and originators will be protected from lawsuits brought by borrowers or mortgage-backed bond holders. If borrowers fall a little short in meeting all the guidelines, the mortgage may still be issued but only if the borrower can show mortgage payments do not exceed 43% of the borrower’s pretax income. MHProNews has been informed these rules take effect Jan. 21 with a 12-month trial period. Exceptions to the rules, which will be finalized this spring, include: Certain non-profits that issue mortgages to low-income homebuyers are to be exempt; some refis through the Home Affordable Modification Program (HAMP); and for certain loans made by small community lenders.

(Photo credit: globeandmail–Canada homebuyers)

FHA may be Teetering on the Edge

December 26th, 2012 Comments off

Townhall tells MHProNews the Federal Housing Administration (FHA) continues to make risky loans to borrowers with low credit scores and/or high debt ratios. Based on zip codes, these borrowers have an expected foreclosure rate of 15 percent, accounting for 44 percent of FHA loans to people of low to moderate means. Not only are taxpayers exposed to the possibility of a bailout, but foreclosures and the ensuing blight reduce the tax rate, making it tougher for municipalities to provide services to those neighborhoods. Backing over $1 trillion in U.S. home loans, the FHA may be facing a $16.3 billion shortfall by the end of Sept. 2013, according to an article in The Wall Street Journal. FHA is attempting reforms that may or may not be successful, but time may be running out for an effective correction to be made.

(Image credit: FHA)