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REALTORS: New Credit Scoring Calculation Will Improve Access to Homeownership
“Realtors welcome today’s [Aug. 8, 2014] announcement from Fair Isaac Corp., or FICO, that it will no longer penalize borrowers for certain debt-collection activities when calculating credit scores.
“This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores. Since the housing crash, overly restrictive lending has been the greatest obstacle to homeownership.
“NAR will continue to support efforts to broaden access to credit for qualified homebuyers.”