Welcome to Home Mortgages
Home Mortgage Lending Article
This is a selection made from among articles on Home Mortgage Lending. For a permanent link to this article, or to bookmark it for future reading, click here.
Credit Help For Renters And Others On The Horizon
from: James H. Dimmitt
Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue’s on-time mortgage payments are reflected in her credit score profiled by the three major credit bureaus; Equifax, Experian and Trans Union.
Joe on the other hand is a renter, who wants to buy his first home in the near future. He pays his rent on time every month as well as his phone and utility bills. Joe is also a good credit consumer but his on-time payments are not reflected in his credit profiles. Why? Because the major credit reporting agencies are not set up to track this type of payment and therefore they are not reflected in Joe’s credit score. Chances are good that Joe’s credit score will be lower than Sue’s because his on-time rent payments go untracked by the credit bureaus.
As a result Joe will be quoted a higher interest rate and higher fees to his lender when he applies for his first home mortgage. Seems a bit unfair doesn’t it? The good news for Joe and other renters like him is that the credit reporting system is about to change.
In a recent Chicago Tribune article, reporter Kenneth R. Harney points to the creation of a new national credit bureau whose “sole mission is to track the payments that nobody else tracks.” The new credit reporting agency PRBC (Pay Rent, Build Credit) wants to build credit files on as many as 10 million renters nationwide over the next 5 years.
According to PRBC’s founder and chief executive Michael Nathans, the new bureau will earn revenue by selling supplemental credit reports to lenders. CitiMortgage, Inc., one of the nation’s major home lenders, is already a subscriber of the new service.
Some other highlights of PRBC’s service include:
- 24/7 access to online files by consumers, free of charge.
- Consumers must give permission to have their files accessed by lenders.
- Consumers can input up to 36 months of documented on-time payments.
- They accept payment histories from phone, credit and debit cards so long as the source (merchant) can send a date-stamped electronic receipt of payment.
- Many consumers who bank online can have their payment information recorded by PRBC once the bureau becomes fully functional
PRBC can benefit not only renters but also young and minority borrowers who have little or no credit history with the traditional bureaus. “We think we can help create equal credit opportunities for everybody who deserves a a prime rate loan, “ Nathans said.
Consumers can register for free with the new bureau online at http://www.payrentbuildcredit.com.
Author: James H. Dimmitt
James is editor of “To Your Credit” a FREE weekly newsletter for consumers. You can subscribe at http://tinyurl.com/bgo9
Home Mortgage Lending Specific links
Blinkx Video Search
- World's largest video search engine. Over 26 million hours of video.
-- http://www.blinkx.com/
Ripe Tv
- Hottest Video portal on the internet. Every Kind of Video - Supermodels, Martial arts, Cool shows, Pick Miss Ripe and More!
-- http://www.ripetv.com/
Free Online Kids Games
- Hundreds of fun free online games for kids.
-- http://www.alfy.com/
Atom Comedy: Great Moments In Human Interaction
- There are a small handful of moments in human life that are so perfect, so wonderful, so priceless that we strive to capture them forever on film. These are definitely not those moments...
-- http://www.atom.com/
Home Mortgage Lending News
Mortgage Applications Skyrocket In Week - Post Chronicle
Many borrowers missed an opportunity to take advantage when rates dropped sharply for a brief period when the GSEs (government-sponsored enterprises) were placed under conservatorship," said Orawin Velz, MBA's associate vice president of economic ...
Read more...Bank rescue plans bolstered - Reuters UK
LONDON (Reuters) - The government is to strengthen the regulation of its banking system by giving the Bank of England powers to step in as soon as a bank begins to show signs of financial trouble. But the annual Queen's Speech -- which sets out the ...
Read more...Paulson Considers New Plan to Lower Mortgage Rates (Update2) - Bloomberg
Dec. 3 (Bloomberg) -- Treasury Secretary Henry Paulson is considering a new plan to lower mortgage rates in an effort to resuscitate the U.S. housing market, a government official said. The Treasury, which already has a program to buy mortgage ...
Read more...Cash-rich banks resume lending to individuals - Thanhnien
After bowing out of the consumer credit market several months ago, local banks have restarted lending to individual borrowers but this time they’re doing so more cautiously. After most commercial banks ceased consumer lending, Prudential Finance ...
Read more...US commits $800 billion more to bail out consumer credit and mortgage ... - World Socialist Web Site
US Treasury Secretary Henry Paulson announced Tuesday another extension of the Bush administration’s bailout of the financial system, committing $800 billion towards lending programs aimed at preventing the collapse of the home mortgage and ...
Read more...Home ownership dream is still possible - broker - National Business Review
There are still plenty of options for people to achieve their home ownership dreams even as banks tighten lending criteria, according to a mortgage broker. ANZ National, the largest bank in New Zealand, is now generally requiring home buyers to have ...
Read more...Obama: Financial bailout must help homeowners, too - Associated Press
WASHINGTON (AP) -- The latest evidence of a deepening recession that's already the longest in a quarter-century came Wednesday in a pair of reports that found little relief in sight. The U.S. service sector shrank far more than expected in November ...
Read more...Tories want mortgage plan details - BBC UK News
The plan is designed to give extended breathing space to those who lose their jobs or suffer a big cut in income, if they are facing repossession. The scheme will cover mortgages worth up to ÂŁ400,000, the BBC understands. The lender and homeowner ...
Read more...U.S. Eyes Plan to Lift Home Sales - Wall Street Journal
WASHINGTON -- The Treasury Department is considering a plan to revitalize the U.S. home market that would push down interest rates for loans to purchase a home, according to people familiar with the matter. The plan, which is in the development stage ...
Read more...Lord Mandelson will force banks to open their coffers - Times Online
Banks face legal action if they refuse to resume lending amid dire warnings of a mortgage drought that will bring further misery to homeowners. The Times has learnt that legal curbs will be imposed on banks if they fail to abide by a new code of ...
Read more...