Will 2019 Be The Year of the Millennial Homebuyer?
Leo Loomie, SVP, Client Development at Mphasis Digital Risk, was quoted in US News and World Report in the article titled “Will 2019 Be the Year of the Millennial Homebuyer?”, talking about the market’s positivity for first-time buyers, particularly those who can take advantage of the new UltraFICO credit scoring.
When it comes to whether the climate is favorable to millennials entering the housing market, Leo Loomie suggests “there are more tailwinds than headwinds going into 2019.”
However, the launch of the UltraFICO Score later this year could be a game-changer for millennials with low scores because of a limited credit history, Loomie says. The credit scoring model will allow mortgage applicants who don’t initially qualify for a loan to opt into having bank account data used to further gauge their creditworthiness. UltraFICO offers a revised score based on factors such as average account balance and automatic deposits from payroll or other sources. According to FICO, 70 percent of those with at least $400 in the bank and no negative balances in the past three months should see their score improve.
“It’s a very interesting way to assess someone’s financial responsibility,” Loomie says. Since the program is only in the pilot phase, it remains to be seen how much of an impact it will have on millennial homebuyers. However, Loomie says UltraFICO could potentially bump up credit scores by 20 points.
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