Friday, November 24, 2006

Alternative credit scoring

I read a bit recently about the Nat'l Association of Hispanic Real Estate Professionals putting out a new guide of lenders who use alternative Anthem credit reports and scores as supplements to FICOs. Couldn't find a link on their Website. It's a major issue with the Hispanic market with often persons who are newer to the States and also tend to be debt-averse.

Anthem evaluates whatever information on an applicant may exist in the files of the national credit bureaus and then mixes in information from other sources such as telephone, utility and rent payments (among others). If you're dealing with young adults or the various immigant groups this could be a huge savings! To find a lender that will evaluate credit beyond the major bureas could mean maybe 5% difference in a mortgage rate between the market rate versus having to get a subprime loan.


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