The Urban Institute reports that the drop has benefitted a limited segment of borrowers
A new report by the Urban Institute revealed that median FICO scores dropped last April, but HousingWire reports that this trend did not make lenders budge on their strict standards.
According to the Institute, the average FICO score for agency originations dropped by a full 17 points in the nine-month period starting June 2016, from 742 to 725 in April this year.
Moreover, refinance organizations accounted for the majority of the drop, where FICO scores dropped 27 points from 752 in October 2016 to 725 in April this year.
The Urban Institute also observed that access to credit has remained tight since the housing crisis. The lower limit for creditworthiness needed to qualify for a mortgage stood at 645 in March, but the rate held steady in the 600 region prior to the crisis, the Institute reported.
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According to the Institute, the average FICO score for agency originations dropped by a full 17 points in the nine-month period starting June 2016, from 742 to 725 in April this year.
Moreover, refinance organizations accounted for the majority of the drop, where FICO scores dropped 27 points from 752 in October 2016 to 725 in April this year.
The Urban Institute also observed that access to credit has remained tight since the housing crisis. The lower limit for creditworthiness needed to qualify for a mortgage stood at 645 in March, but the rate held steady in the 600 region prior to the crisis, the Institute reported.
Related stories:
