This has be close to as speechless as I have been in a long time. I cannot fathom the reason behind this. And.. I would love to know what all this means to people who
- pay their bills on time
- keep within their credit limits
- manage money well
I have always thought these are who lenders are looking for these days to lend money to?
Let me not get started on the rest of the list. I am head scratching enough here, seriously. I will be seeing a loan officer from a local lender tomorrow morning, you can bet your bottom dollar that I will be holding his feet to the fire about this asking him about this!
WHAT IS A Strategic Default Credit Model? Just another credit scoring "Product"? Or, something far more sinister?
Will we soon see STRATEGIC FORECLOSURES?
Yesterday I got an e-mail from a loan officer friend who sends me information about interest rates, new programs, new products, regulations, etc. on a regular basis.
This one got my attention. It describes a new product from FICO.
The Strategic Default Credit Model as described in the announcement, will ALERT a lender if a client (borrower) "appears" to be a high risk for strategically default on their mortgage loan.
This is described as a "scoring tool", which, to me would indicate that it would be available to lenders as a part of a credit review. Or, it could be a special "tool" to aggregate and report borrowers identified as STRATEGIC DEFAULT risks.
WHO IS ON THE RADAR AS A STRATEGIC DEFAULT RISK? (This will suprise you. It did me.)
*Borrowers who have recently opened new credit prior to stopping mortgage payments.
*Borrowers who are a fairly recent home buyer/owner.
*Borrowers with negative equity.
*Borrowers who appear to be good money managers.
*Borrowers who stay within the limits of their credit card accounts.
*Borrowers who pay credit card bills on time.
Are lenders buying this new product?? If so, what do they plan to do with it?? My question to the loan officer that sent the announcement to me was. . . .
Is it possible that a person's FICO SCORE could be affected by this scoring scheme???
"WHAT ARE LENDERS GOING TO DO WITH THIS INFORMATION?? A STRATEGIC FORECLOSURE???
INQUIRING MINDS WANT TO KNOW. I haven't seen anything from ActiveRain loan officer members about this. However, I have been out with buyers or previewing for six solid days and I'm behind in my ActiveRain time.
ANYONE OUT THERE WITH MORE INFO???
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988
Want to learn more about Loudoun County, VA? Join Loudoun County, VA on Facebook!
Andrea Swiedler, Realtor, Southern Litchfield County Real Estate
2017 President, Greater New Milford Board of Realtors
2017 Connecticut Magazine 5 Star Realtor
Coldwell Banker Residential Brokerage
Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776
© Andrea Swiedler 2009 - 2017
Always do right. This will gratify some people and astonish the rest. - Mark Twain