Fed's Duke Sees Challenges and Opportunities For Low Score Borrowers

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Posted To: MND NewsWire

Federal Reserve Governor Elizabeth A. Duke, told an audience at the Housing Policy Executive Council on Thursday that despite the sustained recovery in the housing market that seems to be underway the level of housing market activity is still low. Particularly striking, given the record low mortgage rates, is the subdued level of mortgage purchase originations . This is most pronounced among borrowers with lower credit scores she said. Between 2007 and 2012 originations of prime mortgages fell about 30 percent for borrowers with credit scores greater than 780, but dropped about 90 percent for borrowers with credit scores between 620 and 680. Originations are virtually nonexistent for borrowers with credit scores below 620. Looking at it a different way, the median credit score on these originations...(read more)

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Source: http://www.mortgagenewsdaily.com/05102013_federal_reserve_credit_access.asp

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