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Mortgage Broker News | 13 Jun 2016, 08:15 AM Agree 0
It may have just gotten harder for your clients to qualify for a mortgage … or has it?
  • Mike | 13 Jun 2016, 09:18 AM Agree 0
    Have certainly noticed the change, getting beacons in the high 800's which you never saw before. Seems like an old 809 is now an 875. Now can we loosen up the requirements for clients who have proven themselves?
  • Mike Havery | 13 Jun 2016, 10:15 AM Agree 0
    New scoring will take some getting used to. Seems to heavily penalize over limits and recent delinquents
  • Roger | 13 Jun 2016, 12:08 PM Agree 0
    So it's" really no different", but " there are differences" ??? Should run for politics...
  • Jose | 13 Jun 2016, 12:23 PM Agree 0
    We just had a presentation on beacon 9 and from what I can see it appears it will be an improvement. Lines of credit at or close to limit, a few lates on small balance CC and multiple inquires for he same product over 45 days (previously 15) will not impact your score.
  • James Wood | 13 Jun 2016, 01:54 PM Agree 0
    When are lenders going to take into account the fact that many consumers now use debit cards which reduces the number of trade lines? I recently had a client with no active trade lines because she only uses a debit card; therefore no credit score is generated. Even though she has income from a casual job and child tax credits most lenders were unwilling to use her income.
  • Ron Butler | 13 Jun 2016, 05:03 PM Agree 0
    Wait till you see a file with no late payments at all and nothing over limit but with 6 different R trade lines right at their limits: 611 score. No derogs, not one. Hello Beacon 9.
  • John Greenlee | 15 Jun 2016, 04:11 PM Agree 0
    Ron, I am not sure that that is a result of Beacon 9. I recall a client I had about 3 years ago, score was 586 and she had 5 or 6 Revolving accounts just below their limits and 2 large car loans. She could service the debt no problem, all were long standing accounts, zero late payments, zero over limit still a score of 586.

    I saw your other example under the other article, I certainly hope a drop from 742 to 648 by increasing debt $200 isn't a new norm for Beacon 9. However; if the credit card only has a $500 limit (as an example), then I can see that happening even before Beacon 9 as utilization of credit is part of their algorithm (I know you know that this is for others reading).

    I am interested to see how this plays out in the next few weeks.
  • Ron Butler | 15 Jun 2016, 04:37 PM Agree 0
    John, I do not disagree that many folks will have very little impact and even the occasional upward movement of previous 790 scores to 825 but the effect on those clients who may have been 712 three weeks ago and are now 664 under Beacon 9 is not a good thing for mortgage brokers.
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