The mortgage industry, like much of the world, has been greatly impacted by COVID-19. As a response, mortgage lenders have changed their policies and practices to adjust for the risks of higher-credit borrowers.
Borrowers can now be received with credit scores of 680-699 where previously this had been a very risky area to approve. These changes have resulted in access to lending to borrowers where other lenders previously would not. This has enabled lenders to flatten curves for higher-risk borrowers and support their financial needs.
These changes have also meant that borrowers with lower-risk scores have seen their access to lending reduced. It has resulted in lenders increasing the amount of higher-risk borrowers they receive, prompting lower-risk borrowers to take advantage of the competitive market or look to other options.
Notable points include:
* Changes in policies and practices to adjust for higher-risk borrowers
* Flattening curves for higher-risk borrowers using credit scores of 680-699
* Lower-risk borrowers need to take advantage of the competitive market or look to other options
You can read this full article at: https://www.housingwire.com/articles/opinion-setting-the-record-straight-on-mortgage-pricing/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
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