Millennials fuel mortgage growth
Experts project an increase in first-time homebuyers.
Economic trends in residential real estate suggest opportunities ahead for financial institutions in mortgage lending. In 2017, there will be more qualified borrowers, more buyers looking for a home, more new homes, and more refinancing for home improvement.
Experts expect a new credit scoring methodology to increase the number of qualified borrowers by 12 million—about 6% of U.S. FICO credit scores—according to Fair Isaac Corp.
The change, which took effect July 1, will boost the credit scores of borrowers who had negative marks due to medical collections, tax-liens, or civil judgments.
The increase is a result of efforts by the Consumer Financial Protection Bureau and the Consumer Data Industry Association (CDIA) to enhance the accuracy of credit reports. CDIA represents Equifax, Experian, and TransUnion.
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