Last One, just paying it forward Credit score of 580 or below Statistically, borrowers with credit scores within this range have demonstrated a much higher rate of default in the GRH program. Lenders should not approve loans with credit scores of 580 and below if they exhibit any of the following: One or more 30-day lates in the past 12 months. Bankruptcy or foreclosure discharged less than 36 months. Outstanding judgments within the past 12 months. Two or more rent payments 30 days late within the past 3 years. Outstanding collection accounts with no payment arrangements that are currently due. Outstanding tax liens or delinquent federal debts with no payment arrangements Accounts converted to collections in the past 12 months. Extraordinary compensating factors must be present to allow an adverse credit history waiver. Additional risk layers in addition to the lower score is not recommended. No credit score – Non-traditional credit No additional layers of risk are advisable for applicants with non-traditional credit. At least 4 non-traditional credit references, for a period of 12 months or more, should be developed, comprised of the following: Rental or housing payment Utility payment records Insurance payments Payments to a retail store
Posted on: Thu, 13 Mar 2014 15:53:58 +0000
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