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Tight Credit: FICO Scores and Mortgages

  • A number of Realtors® responding to the April RCI Survey indicated continued exceptionally tight credit conditions.
  • A comparison of FICO scores for loan transactions as reported by Realtors® responding to the RCI over the February/March/April time span compared with FICO scores reported by Fannie Mae’s “Acquisition Profile by Key Product Features” – showing lending conditions in the pre-boom normal housing markets of a few years ago – shows that credit availability to lower scoring applicants appears to have declined.
  • Realtors® provided FICO information based on their understanding of the buyers’ credit situations; in many cases the information was estimated. Overall the data seem to substantiate relatively tight credit conditions.
  • Additional information on a variety of topics related to current residential market conditions may be found here.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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