«Given that the composition of new homeowners is skewed to Hispanics and nonwhites, who have lower credit scores and have less income and less wealth than their non-Hispanic white counterparts,
the tight credit box will inhibit homeownership even more going forward than it has in the past, unless we do something to correct it,» writes Goodman.
But they say there are other problems, particularly around banks» verification of borrowers incomes, scrutiny of appraisals, and other factors that have led to
a tighter credit box.
Not exact matches
This rolling process of accumulating
credits had
boxed the exam regulators into a
tight corner, meaning they had to balance different levels of difficulty in January and June against the requirement to maintain standards.
In today's economic climate of
tighter credit requirements and increased unemployment rates taking their toll on some Canadians, there's no doubt that many people may not fit into the traditional banks» financing
boxes as easily as they may have just a year ago.
According to Goodman, «
credit is very
tight in large part because originators are putting
credit overlays on top of the Fannie Mae, Freddie Mac, and FHA underwriting
box» — in other words, imposing a second set of rules.