Improving The Housing System To Expand Lending

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Peoples Home Equity was intrigued by a release citing a report from a Dr. Kenneth Rosen.

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The difference between a satisfactory credit score and a good credit score makes all the difference these days to get approved for a mortgage.

Access to credit for Americans has become strict which is a bad thing according to Dr. Kenneth Rosen, Chairman, Fisher Center for Real Estate and Urban Economics and Professor Emeritus, University of California, Berkley. According to, Dr. Rosen wrote a concerning view of housings lending system in RealtyTrac’s March Housing News Report. Peoples Home Equity was intrigued by the report as it shed light on the difficulty of the current lending situation in America.

Mortgage News Daily highlighted the fact that “the federal government is supporting nine out of ten loans and private lenders are lending only to the well-off but both sectors are similarly focused on borrowers with high credit scores and even FHA scores have increased substantially since 2009.” The difference between now and the past is that under “the old rules a 620 FICO with 5 percent down was an insurable prime loan, today 680 is the new 620.”

Accordingly Mortgage New Daily, Rosen recommends four changes that must be made to the current system to make it more equitable:

Ensuring that the Qualified Mortgage provides access to both low and moderate-income families;

Ensuring that pooling of risk and securitization is used to expand opportunity and create investment options;

Ensuring that the system builds and supports a pipeline of future home buyers willing to save and improve credit quality in pursuit of homeownership; and

Ensuring that the system allows access by way of loan products and terms that do not invite foreclosures.

Peoples Home Equity lends to mostly middle class Americans across the nation. While cautious in its practice of lending, it also agrees that sometimes the regulations are too strict. Some individuals who are easily affording their rent and could probably be saying with a home loan simply cannot obtain a mortgage due to some negativity in their record. Peoples Home Equity encourages readers to check their credit score annually and make sure there are no mistakes. The difference between a satisfactory credit score and a good credit score makes all the difference these days to get approved for a mortgage. Peoples Home Equity agrees in the need to improve the housing system in that the next leg of the housing recovery will probably be led by first-time home buyers, a population segment riddled with student debt and low savings.

If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: (855)-897-0300

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Giorgio U Ferrero
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