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Lenders Reduce Required Credit Scores For Fha Loans

February 28, 2014

A Second Act for Large Loans

The FHA theoretically allows credit scores as low as 580. But lenders, buffeted by defaulted loans and demands that they buy back troubled mortgages that they sold, generally have set standards higher since the mortgage meltdown. A Wells official said the bank consulted with the FHAs parent, the federal Department of Housing and Urban Development, and with advocacy groups before making its decision. All loan applications are fully underwritten and documented, and borrowers must demonstrate ability to repay, Wells spokesman Tom Goyda said.
For the original version including any supplementary images or video, visit http://www.latimes.com/business/money/la-fi-mo-fha-credit-scores-20140227,0,3347002.story

Freddie Mac interest rates Jumbo-loan modifications are making up a smaller share of overall modification activity, according to Black Knight Financial Services, a mortgage data and services company. Jumbo loans accounted for 6.7% of all modifications in November 2013, down from 12.1% in November 2012. In August 2009, the rate was at 18.3%. Modification activity in general, including for jumbo loans, appears to have peaked, says Herb Blecher, senior vice president of Black Knight Financial Services' data and analytics division. "Industrywide modification initiatives have been in place for upward of five years now, and most borrowers that would qualify have already been modified," he says.
For the original version including any supplementary images or video, visit http://online.wsj.com/article/SB10001424052702304434104579383451100379832.html

U.S. sues college chain ITT over loans

Earning an associate's degree at ITT can cost more than $44,000 and bachelor's degree programs can cost up to $88,000, the bureau says. That is significantly higher than the cost of similar degrees at a community college or a public four-year institution, says CFPB. The bureau's complaint alleges that ITT encouraged new students to enroll at ITT by providing them so-called "tuition gap" funding with a zero-interest loan called "Temporary Credit." This loan typically had to be paid in full at the end of the student's first academic year. But, the suit claims, ITT knew from the outset that many students would not be able to repay their balances or fund their next year's tuition gap. The CFPB alleges that between July and December 2011, ITT pushed students into repaying their temporary credit and funding their second-year tuition by taking out high-cost private student loans.
For the original version including any supplementary images or video, visit http://www.usatoday.com/story/money/business/2014/02/26/itt-lawsuit-cfpb/5837863/

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