FNMA will soon require total debt-to-income levels may not exceed 45 percent, except by exception.  This new requirement will be effective December 11, 2009.  This change in income is in addition to the minimum credit score requirement being raised to 620.

Fannie Mae will require a credit score of at least 620 for all mortgage loans, including FHA and VA loans, effective on November 1, 2009.  Currently the minimum score for most loan types is 580, with no minimum for government loans. Brian Faith, a spokesman for Fannie Mae, told American Banker, “Our experience with recently [...]

“A study shows that people who abruptly and intentionally abandon their mortgages often have high credit scores, in stark contrast with most financially distressed borrowers. Research using a massive sample of 24 million individual credit files has found that homeowners with high scores when they apply for a loan are 50% more likely to “strategically [...]

Credit card interest rates are on the upswing.  You may not be safe from the increases, even if you always pay your bills on time.  In this tough environment, card issuers are acting aggressively to offset a growing pile of default-related consumer debt losses.  They’re spiking interest rates, cutting credit limits and implementing higher fees and [...]

The following is part of continuing series on credit scores. Amounts owed tips Keep balances low on credit cards and other “revolving credit.” High outstanding debt can negatively affect a score. Maintain balances at or below 50% of the available credit limit. Pay off debt rather than moving it around. The most effective way to [...]

The amount owed on accounts makes up approximately 30% of the weight of the score. Having credit accounts and owing money on them does not mean the consumer is a high-risk borrower and gets a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and [...]

The best advice is to manage credit responsibly over time. Pay bills on time. Delinquent payments and collections can have a major negative impact on the score. Late payments reported recently are more detrimental to the score than are late payments that were reported in the past. If the consumer has missed payments, he/she must [...]

Payment history accounts for approximately 35% of the weight of the credit score. This is one of the most important factors in a credit score. However, late payments are not an automatic “score-killer.” An overall good credit picture can outweigh one or two instances of late credit card payments, for example. By the same token, [...]

“Credit bureau  Experian and consulting firm Oliver Wyman claim they have developed a way to estimate the number of “strategic defaulters,” those who stop paying the mortgage  intentionally due to negative equity. A report conducted by the pair revealed that those in the so-called superprime and prime credit score categories are 50 percent more likely to engage [...]

Credit scores consider a wide range of information on the consumer’s credit report. However, they do not consider: A consumer’s race, color, religion, national origin, sex and marital status. US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the [...]