FHA Implements Supplemental Performance Metric to Boost Credit

Filed in Homeownership, Housing Finance by on August 18, 2015 0 Comments

460635259The Federal Housing Administration announced Aug. 17 that it has implemented a new Supplemental Performance Metric designed to help more qualified home borrowers with sub-680 credit scores to obtain access to credit.

The metric provides financial institutions and FHA more information regarding the performance of loans within distinct credit bands.

FHA says the metric is intended to “address the difficulty of sub-680 credit score borrowers’ ability to access credit, especially for those who are below 640. This metric provides more nuanced insight into a lender’s specific performance and encourages lenders to serve creditworthy underserved borrowers.”

Additional information about the Supplemental Performance Metric and how FHA calculates the metric can be found in the Supplemental Performance Metric fact sheet posted today on the Lender Performance Web page on HUD.gov.

NAHB provided input to FHA to help ensure home buyers have access to affordable mortgages as the agency was developing its Supplemental Performance Metric.

For more information, email Steve Linville at NAHB or call him at 800-368-5242 x8597.

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