The ‘Credit Box’ Needs to Open a Little More to Meet Goal

Chicago Tribune, Feb. 1, 2016–Harney, Kenneth R.

Federal housing policymakers and mortgage lending groups have been talking about expanding access to home loans for greater numbers of creditworthy buyers for more than a year. They call it “opening up the credit box” and insist that it’s an important goal. David Stevens, president and CEO of the Mortgage Bankers Association, argues that Fannie Mae and Freddie Mac automated underwriting systems continue to impose high fees on borrowers with low FICO scores and down payments. Stevens also criticized the Justice Department for effectively discouraging participation in FHA’s low down-payment loans.