An open letter to the next director of #HUD
. Please share this!!
, Director of HUD will be a great position for you. I want to talk to you about a problem keeping good borrowers from qualifying for home loans .
This issue is not well known outside of a very small niche serving the mortgage industry. You see Fannie and Freddie are requiring a FICO score that was developed in 2003. Mel Watt has talked about the need to make an update, but never took any action. This could be a great opportunity for you to get an early win in your new position.
The newest FICO score called FICO9 has two very important improvements that will help home buyers dramatically
1) When you pay a collection it is removed from the FICO9 Score ( the old way is a mess)
2) FICO9 takes a deeper look at payment history and is a better indicator of good credit behavior.
Please let me know the next time you are in Detroit. I would love he chance to further explain why this is so important.