Federal housing agencies to allow alternate credit scores in mortgage applications
Source: Scripps News
Posted 6:28 PM, Apr 22, 2026
The Trump administration on Wednesday announced new policy changes intended to help more Americans access mortgage loans, as the cost of housing continues to climb and data shows first-time homeownership rates in the U.S. remain near historic lows.
Federal Housing Finance Agency (FHFA) Director Bill Pulte and Secretary of Housing and Urban Development (HUD) Scott Turner said in a joint press conference Wednesday that their agencies would take steps to allow non-traditional credit scores to be used when considering mortgage applications, enabling tens of millions more Americans to qualify for loans previously out of reach, according to Pulte.
But such moves, long in the works, are likely to have much more limited effects than Trump officials say, experts told Scripps News, as the greatest barrier to homeownership remains the stubbornly-high cost.
What is holding back a lot of folks from home ownership isn't the credit score, it's the price of buying a house, Chi Chi Wu, director of consumer reporting and data advocacy and acting co-director of federal advocacy at the National Consumer Law Center (NCLC), told Scripps News. Until we can get the price of housing down
you're not going to get a whole wave of new home ownership.
Read more: https://www.scrippsnews.com/us-news/housing/federal-housing-agencies-to-allow-alternate-credit-scores-in-mortgage-applications
AZJonnie
(3,838 posts)And if a bunch of money floods into the market, without building much more? Home prices will respond by going UP. Higher demand, lower supply pretty much does that. And IQ47 DID SAY he wants real estate prices to be high like a month ago. Probably a coincidence that he owns a bunch of real estate himself.
Doodley
(11,995 posts)BumRushDaShow
(170,907 posts)where the "credit default swaps" may make a more deregulated return as the GOP further weakens Dodd-Frank.
So they are artificially improving the credit scores of those with a credit score that is, well, not so good. And this is supposed to help? What's that smell? Defaults? Foreclosures?
Anyone who wants to understand why this is not a good idea I highly recommend watching the movie "The Big Short." The movie is entertaining and it explains what happened in the financial crisis and the "great recession" back in 2007-2010 when the housing market crashed, many big investment firms went bankrupt and thousands and thousands (millions actually) of average Americans lost their jobs and their homes. It is actually one of my favorite movies. And it appears as though America never learned. We are headed into the same abyss but I fear it will be worse this time. Do we really want to do this again? Really, again?
Here's a clip:
The Big Short (2015) - Jared Vennett's Pitch to Front Point Partners (Jenga Blocks Scene)
Norrrm
(5,293 posts)OC375
(1,079 posts)It just more people competing for dwindling resources. It will reduce affordability and increase scarcity.
valleyrogue
(2,765 posts)Homeownership is a luxury. Renting is a necessity.
Buddyzbuddy
(2,749 posts)"Liar real estate loans" were the main reason for the collapse in 2008.
Lenders were allowed to accept "stated income" on loan applications to qualify for a real estate loan.
For example, applicants earning under
$100k per year were qualifying for million dollar+ loans by lying about their income. There is a reason there are guidelines to qualifying for a loan. It's to increase the likelihood the applicant can pay for the purchase. In many cases, the government guarantees these loans so lenders will make loans they wouldn't otherwise provide. But, the gov't. currently has strict guidelines. Republicans want to change that and they also want lower interest rates. But without having to put in the work to actually make our economy stronger. That requires time, work and sacrifice.
These bad loans were bundled with good loans and sold to banks on the secondary market until it collapsed.
The taxpayer paid for the f*ckup.
Here we go again. Fake it until you break it. Republicans will give a false sense of a robust economy. The Democrats will have to clean it up again and get the blame because the bubble will burst, once again, on their watch.