The Federal Reserve Bank of New York recently published its findings from its first quarter consumer credit panel. According to this study, more than half of all mortgages made during these three months — 51 percent — went to borrowers who had an Equifax credit score of at least 760. Looking at these figures in terms of dollars instead of loans, those with scores of 760 or more accounted for an even larger percentage of 58 percent. Out of the total $389 billion dollars made in mortgages between January and the end of March, those with excellent credit scores received more than $225 billion.
On the other hand, borrowers who had a credit score that fell between 620 and 659, which lenders consider to be poor and below-print credit, only received 4.6 percent of the $389 billion.
Figures from 2004 show exactly how much more importance lenders are placing on credit score today. During the first quarter of that year, those with a minimum credit score of 760 received only 23 percent of all mortgages made, while those with a score between 620 and 659 received more than double (9.7 percent) what they did during 2016.
According to National Community Reinvestment Coalition President, John Taylor, mortgage regulations are even tighter now than they have been in four decades, despite the fact that the economy has recovered from the recent depression and that the housing industry has addressed the issues that led to the housing crash.
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