Are Lenders and Homebuyers Proceeding with Caution When it Comes to Credit Scores?
There have been plenty of learning experiences for lenders and homebuyers when it comes tom knowing and controlling your credit score.
Last week, National Mortgage News explored a notion that lenders and homebuyers seem to be proceeding with caution and greater awareness when it comes to applying for and approving mortgages. This week, the publication is continuing their exploration of the widening credit score gap.
"We certainly would highlight the increased consumer awareness and the increased availability of FICO scores and credit education content as a driver of the [credit score] improvement that we've seen in the recent past," said Ethan Dornhelm, vice president for scores and analytics at Fair Isaac Corp., according to National Mortgage News.
Consumers seem to be proceeding with caution when it comes to using their credit, however, experts say that failure to take risks is making the lending process a bit more difficult.
"The crisis was a wake-up call for consumers, and helped them manage their credit better. But, it also made them hesitant," according to the report.
"What lenders have that borrowers lack is specialty in the subject and tactics to help them take on more risk."
To learn more about the widened credit score gap and what lenders can do to help borrowers, click on the image above.