Newrez originated roughly $10 million in mortgages scored with VantageScore 4.0 that Freddie Mac has now securitized. The move is part of a pilot that helped federal housing agencies greenlight wider use of modern credit scores.
Payment history is the biggest factor in your score, as lenders evaluate whether you pay bills on time. Lower credit utilization signals less risk, while a longer credit history builds trust with lenders.
Eric Ellman, president of the National Consumer Reporting Association (NCRA) said we learned from the 2008 housing crisis that more data is better than less data, especially when the financial stakes are so high. He added, The cost of being right for spending an extra $100 is so much stronger a case to make than the downside risk for a consumer who might lose thousands over the lifetime of a loan.
Refinance applications increased for the fourth straight week to the strongest pace since 2022, with conventional refinances up 20%. The increase in the average loan size for refinances indicates that more borrowers with larger loan sizes are seeking to lower their monthly payments.
