Fico 08 - will it help or hinder the housing and credit crunch?

Fico 08 was supposed to begin almost 1 month ago but it sounds like it is not too far behind. For many people applying for loans using credit scores derived by getting themselves added as an authorized user on someone elses credit cards, this is a wonderful thing! At some point the release will come out from all 3 credit bureaus Equifax, Transunion and Experian. The real question is what will all of the other changes be and how will they affect the mortgage and credit markets? With the national housing market still be challenged will these new changes drop many peoples credit scored so that they can not get approved for a loan when their adjustments come up. Granted, not everyone has an adjustable rate loan, but for those that do the much tighter mortgage guidelines have made it more difficult to refinance into a fixed rate loan. Those who do qualify and do not have a near perfect credit score also have higher rates. (Sometimes much higher) This is do to risk based pricing models.

I have many things on my mind right now with Fico 08 but the biggest when it comes to mortgages is will this help the average home owner or home buyer or hurt them?

Don LaPlume

President

Sensible Mortgage Solutions Corporation