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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (123813)	5/18/2008 5:34:02 PM
From: Jim McMannis	Respond to of 306849

Risk-based loan system in the works DALLAS – Who have better credit scores on average – home buyers with higher or lower incomes? signonsandiego.com Inside the country's fastest-growing home mortgage program, the surprising answer is: People with lower incomes have slightly higher FICO scores. That finding, which emerged from a statistical analysis of all approved mortgages insured by the Federal Housing Administration (FHA) during fiscal 2007, is now buttressing a forthcoming major policy switch that could affect thousands of buyers and refinancers. AdvertisementFHA, which for decades has used a one-size-fits-all approach to pricing its insurance on home loans, plans to shift to a “risk-based” system keyed to FICO scores and down payments, beginning as early as mid-July. Private sector lenders and insurers have priced interest rates and premiums using sliding scales of FICO scores and down-payment amounts since the mid-1990s