Consumers Dont Understand Mortgage Qualifications

first_img Share Consumers Don’t Understand Mortgage Qualifications Consumer Knowledge Fannie Mae Mortgage Loan Qualifications 2015-12-10 Staff Writer December 10, 2015 544 Views center_img Although credit standards are easing, job markets are improving, and consumers continue to show the desire to own a home, actual homeownership remains at a low level across the nation.So why are consumers not capitalizing on the positive economic conditions the mortgage industry has been experiencing?Fannie Mae’s Economic & Strategic Research Group determined in the recent survey of 3,868 consumers that they just are not knowledgeable about the mortgage qualification process.”Advancing from aspiration to sustainable homeownership is more likely to occur if consumers have an accurate understanding of the requirements to qualify for a mortgage,” Fannie Mae stated in the report. “While it can take years to improve one’s credit score or save for a down payment, undertaking such efforts based on inaccurate information may lead to a needless delay in reaching the goal of owning a home.”The survey showed that consumers lack a basic understanding of minimum mortgage qualification requirements among all consumers, but especially renters that want to buy a home in the next five years.When questioned about mortgage criteria such as down payment, credit score, and debt-to-income ratio, about half of those surveyed could not provide an answer, while only 23 percent are aware of the 3 percent and 5 percent down payment programs.Consumers do appear to check their credit score, with 80 percent of consumers indicating that they have seen their credit score, but 49 percent do not know what their score is or give a number outside of the scoring range.Survey results found that consumers do believe that lenders are the “most influential” source of information for obtaining mortgage advice, followed by family and friends.”Lenders are in a vital position to help close consumers’ knowledge gap of what is required in today’s mortgage market to successfully obtain mortgage credit,” Fannie Mae concluded. “Our results also suggest opportunities to partner with Realtors, counselors, and other groups to help minority consumers build knowledge in the early stages of buying a home. Another element of good news is the large share of “don’t know” responses as it is easier to provide new knowledge than to reverse misperceptions.”Click here to view the full report. in Daily Dose, Data, Government, Headlines, Market Studies, News, Originationlast_img read more


first_img Comments   Share   Top Stories Cardinals expect improving Murphy to contribute right away *I can’t believe I’m about to write this*Levi Brown gets a bad rap.Taken by the Cardinals with the fifth pick in the 2007 NFLDraft, the offensive lineman has at best adequate, and atworst…well…Levi Brown.Sure, he has not missed a game since his rookie season,starting all 16 (plus playoffs) every year since 2008. Andyes, at 28, he’s in the midst of his prime, a player whoshould not see a significant drop off in play anytimesoon. Still, there are plenty offans who feel the team bringing Brown back was amistake on par with drafting him in the first place.After all, why continue on with a player who, with everyfalse start or blown pass protection, reminds us that theteam passed on some guy named Adrian Peterson? Well, because it was the right thing to do.While Brown is not an elite left tackle like Joe Thomas,Jake Long or Joe Staley, he is a player who hasstarted for two playoff teams – one of which reached theSuper Bowl. Of course, he did so as a right tackle, which is where theteam is rumored to be moving him back to this year. Canthe team find a better left tackle either through thedraft or what’s left in free agency? One would hope so,but at least the team is not left looking to fill bothtackle spots. That is how a team backs itself into a corner. That is howa team drafts Levi Brown in the first place.center_img What an MLB source said about the D-backs’ trade haul for Greinke D-backs president Derrick Hall: Franchise ‘still focused on Arizona’ Nevada officials reach out to D-backs on potential relocationlast_img read more