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Signs mortgage lenders are easing their standards

Signs mortgage lenders are easing their standards

“As we get further away from the Great Recession,” FICO researchers said, “underwriting criteria seems to have eased and a broader section of consumers are obtaining mortgages as a result.”

New loans with FICO scores below 700 — including some in the rock-bottom 400s and 500s — have increased from 21.9 percent of the market in 2009 to just under 30 percent (29.7 percent) last year, according to FICO researchers. (FICO scores range from 300, indicating severe credit history problems and high risk of default, to 850, where the probabilities of missed payments or default are extremely low.)

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