Millennials fuel mortgage growth

Experts project an increase in first-time homebuyers.

July 19, 2017 by Bob Crandall, CU Magazine

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.