VantageScore 4.0 available for use in VA loans
National Mortgage News
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As more investors opt to accept VantageScore 4.0, the company behind the model is making it known that the Department of Veterans Affairs is taking the scorecard for its mortgage guarantee program. The VA does not have a credit score requirement. At least one VA lender, Cardinal Financial, said it is using the advanced scorecard from VantageScore's rival FICO, the 10T model. That is a sign that the VA is willing to accept loans using these more current metrics than the standard for the industry, Classic FICO. Currently, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac are working on incorporating VantageScore 4.0, as well as FICO 10T, into their automated underwriting systems.?
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The Freddie Mac Primary Mortgage Market Survey found the 30-year fixed rate mortgage increased by 2 basis points this week, bucking industry expectations. The news came as investors celebrated this week's Consumer Price Index report of 2.9% annual inflation growth that pushed other mortgage rate measurements lower. Lender Price product and pricing engine data posted on the National Mortgage News website put the 30-year fixed at 6.547% as of 11 a.m., a rather large 32 basis point drop from 6.864% a week ago.
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More industry analysts are joining the chorus of voices predicting that the Federal Open Market Committee will start cutting short-term rates at some point this year. Recent data relating to job growth and unemployment are the evidence that Fed policy is working, thus a rate cut at its September meeting, even a large one, may be appropriate, Realtor.com Chief Economist Danielle Hale stated in a Wednesday press release. Market forecasts are contemplating at the September FOMC meeting rates could be dropped anywhere from 50 basis points to as much as 150 basis points.
Loan performance showed signs of worsening last month, with foreclosure numbers reflecting a potential pivot to what had been improving trends among distressed borrowers. Foreclosure filings, including default notices, scheduled auctions or bank repossessions, appeared on a total of 31,929 mortgaged properties in July, representing one out of every 4,414 units, according to real estate data provider Attom. The total increased 15% from June, when one in every 5,071 properties had a foreclosure filing. Compared to a year ago, the increase was more muted at 0.2%.
Voxtur has named a former member of its c-suite who also previously served as the CEO of one of its acquired companies to help lead the company as it changes tack and sells a servicing technology holding. Ryan Marshall, who has served in chief operating and product roles in the past, has been named CEO. Accordingly, Chairman Gary Yeoman has shed his CEO title, allowing him to focus on shareholder relations, banking and capital markets. The move comes after Voxtur successfully fended off a challenge by activist investors.
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