Millions of Consumers Getting a Credit Score Boost

An overhaul in how several major credit reporting agencies factor in negative credit information is prompting millions of consumers’ credit scores to rise. Collection events were struck from 8 million consumers’ credit reports in the 12 months ending in June. The New York Federal Reserve reported Tuesday that consumers who had at least one collections account removed from their credit reports are seeing an 11-point increase to their scores.

Critics have long claimed such dings to scores are prone to errors or that they’ve unfairly kept many out of the borrowing market. Equifax, Experian PLC, and TransUnion have all agreed to revamp reports, which stems from a 2015 settlement with state attorneys general on the matter. In the settlement, the firms agreed to remove some non-loan related items that were sent to collection firms, such as gym memberships, library fines, and traffic tickets. They also agreed to strike medical-debt collections that have been paid by a patient’s insurance company.

Source: “Overhaul Boosts Credit Scores of Millions of U.S. Consumers,” The Wall Street Journal (Aug. 15, 2018)

Survey shows correlation between consumer attitudes and personal experience

Fannie Mae’s third quarter National Housing Survey shows that those who are exposed to default have similar attitudes about buying a home as those who do not know people who have defaulted.  However, the survey also finds greater pessimism about the economy and personal finances among consumers who know defaulters.

“Knowing someone who has defaulted on their mortgage appears to be correlated with consumers being slightly more pessimistic about the direction of the economy, their finances, and their ability to obtain a mortgage, but does not materially correlate with their desire to own a home or their view of housing as a safe investment,” said Doug Duncan, vice president and chief economist of Fannie Mae.

Owners and renters who know defaulters are as likely to say owning makes more sense than renting, say buying a home is a safe investment and display roughly the same intention to buy a home as those who do not know a defaulter.

However, the survey also finds higher levels of pessimism on several measures related to the broader economy and personal financial prospects among consumers who know people that have defaulted:

More information at: http://www.fanniemae.com/portal/about-us/media/corporate-news/2011/5546.html

Other information about the Placerville, El Dorado County, California regions at: www.dougandbudzeller.com

Is the Housing market up? Or Down? It depends on who you ask!!

CoreLogic Home Price Index Shows First Month-Over-Month Increase since Mid-2010
Real Estate Industry and Trade Media
––But Prices Are Still 7.5 Percent Lower Than A Year Ago, When The Tax Credit Was In Place––

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today released its April Home Price Index (HPI) which shows that home prices in the U.S. increased on a month-to-month basis by 0.7 percent between March and April, 2011, the first such increase since the home-buyer tax credit expired in mid-2010. However, national home prices, including distressed sales, declined by 7.5 percent in April 2011 compared to April 2010 after declining by 6.8 percent* in March 2011 compared to March 2010. Excluding distressed sales, year-over-year prices declined by 0.5 percent in April 2011 compared to April 2010 and by 1.6* percent in March 2011 compared to March 2010. Distressed sales include short sales and real estate owned (REO) transactions.
“While the economic recovery is still fragile and one data point is not a trend, the month-over-month increase based on April sales activity is a positive sign. This is the first month-over-month increase in the HPI since government support for home buying was removed, and it provides reason for cautious optimism,” said Mark Fleming, chief economist for CoreLogic.
Highlights as of April 2011
Including distressed sales, the five states with the highest appreciation were: North Dakota (+4.2 percent), Vermont (+3.4 percent), New York (+3.2 percent), The District of Columbia (+2.2 percent) and Mississippi (+1.4 percent).
Including distressed sales, the five states with the greatest depreciation were: Idaho (-15.2 percent), Michigan (-13.2 percent), Arizona (-11.9 percent), Rhode Island (-11.6 percent) and Nevada (-11.4 percent).
Excluding distressed sales, the five states with the highest appreciation were: West Virginia (+8.4 percent), South Carolina (+6.1 percent), Hawaii (+5.8 percent), Mississippi (+5.0 percent) and North Dakota (+4.5 percent).
Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-10.3 percent), Idaho (-9.5 percent), Arizona (-6.0 percent), South Dakota (-5.9 percent) and Minnesota (-5.6 percent).
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to April 2011) was -33.8 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.9 percent.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 92 are showing year-over-year declines in April, an increase over March when 91* of the top CBSAs were showing year-over-year declines.

Data Highlights • Negative equity remains concentrated in five states: Nevada, which had the highest negative equity percentage with 67 percent of all of its mortgaged properties underwater, followed by Arizona (49 percent), Florida (46 percent), Michigan (38 percent) and California (32 percent).

• The largest declines in negative equity were concentrated in the hardest hit states. Alaska experienced the largest decline, falling 1.8 percentage points, followed by Nevada (-1.6), Arizona (-1.4), California (-1.2), and Florida (-0.9). Idaho and Alabama are the only states with noticeable increases, which is not a surprise given they are currently the two top states for home price depreciation.

*March data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
Full-month April 2011 national, state-level and top CBSA-level

SOURCE:Full articles can be found at: http://www.corelogic.com/About-Us/News/CoreLogic-Home-Price-Index-Shows-First-Month-Over-Month-Increase-since-Mid-2010.aspx  and: http://www.corelogic.com/uploadedFiles/Pages/About_Us/ResearchTrends/Q3_2010_Negative_Equity_FINAL.pdf

TBWS Daily Show, “News Video”

Economy is recovering at a moderate pace?  

Fed’s to Keep Rates Artificially Low for Now?

Plus, flood insurance requirements may be deceiving?

Sacramento flood levees 100 years old?

The Federal Reserve says the economy is recovering at a moderate pace. Flood insurance requirements may be deceiving. In many cases it could be wise to buy it even if it’s not required. Getting a little down? Go buy yourself something!

Catch all of your real estate news and mortgage news with Frank Garay and Brian Stevens at:  www.TBWSDailyShow.com.  

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

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