Embarking on the journey to homeownership is an exhilarating experience, but it comes with its…
Fair Isaac is updating the secret formula for FICO scores in a way that will make it tougher for some consumers to get credit. Before breaking glass and pulling the fire alarm, it’s worth noting: It won’t have much of an impact on the $2 trillion of mortgage originations expected for this year.
“It’s not going to have a huge impact for mortgages, other than some people who are looking for private-label,” said Christopher Low, chief economist at FHN Financial. That’s only about 10% of originations, he said.
“It’s a lot more likely to affect people who are trying to get car loans and credit cards,” Low said.
Read the full HW article here.