Lower FICO Scores - A Harbinger of Hope?

Posted To: MND NewsWire

What is that cloud of dust in the distance? Is it a bird, a plane? We mix our popular culture references, but maybe it is a faint signal of approaching looser lending standards. Ellie Mae's Origination Insight Report for January reports a fairly significant drop in the FICO scores of closed loans, down 4 points overall compared to the previous month, to an average of 722 . While one month certainly doesn't make a trend, this was the latest what has been a nearly monthly drop in scores, coming down off the 2016 high of 731 in August. It was however mostly refinancing that brought down the average. Conventional refinance scores dropped 7 points to 732, FHA eased back by 3 points and VA by 2 points. Ellie Mae also reports that the share of home purchase originations dipped slightly in January...(read more)

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