Thanks To COVID-19, FHA Mortgage Lending Gets Stricter

Forbes, Apr. 3, 2020–Aly J. Yale
The COVID-19 pandemic has forced lenders’ hands when it comes to FICO score minimums. As more and more Americans lose their jobs or see reduced wages because of the virus, the risk of foreclosure goes up. Investors who buy mortgage loans will lose out when that happens—and taking on more risk by lending to lower-credit borrowers? That’s just not something investors (or the lenders who sell to them) are interested in.