Some important changes to credit scoring

There has been news recently regarding medical collections and settled collection accounts will no longer be used in calculating consumer credit scores, and this good news should take effect around the end of this year with lenders, and the bureaus probably in the fall. The piece in the Wall Street Journal is here.

It’s very important to realize at this time though, that mortgage credit scores will not be affected, since Fannie Mae and Freddie Mac have not yet approved these rules as I write this blog. Confusing isn’t it? Remember, on a previous blog we discussed that establishing positive trade lines like credit cards will help raise your FICO scores, which will in turn help more people qualify for a mortgage, so it is some good news.

Since Fannie Mae and Freddie Mac are Government-sponsored enterprises the hope is that they eventually will follow suit; writing to your Congressperson, especially if you are a Realtor would be a great idea.

Remember, I am here to help you get to a mortgage approval. We will get together and and navigate through the current rules in place to get you in your new home.

John Lyng is a Mortgage Loan Officer with Supreme Lending. He is experienced with traditional bank programs, as well as alternative programs to help people get into their home. John has a varied background in working with mortgage banks and non-profits, and believes in guiding families to prepare for affordable homeownership.

If you have questions about this or any mortgage-related topic, please contact John Lyng directly at 214-862-3579, or send an email to John.Lyng@SupremeLending.com.