FHA and Fannie Mae and Freddie are trying hard to re-build their creditworthy reputation among the global mortgage investor population. Proudly, more "Excellent" ranking of the FHA loans is a Giant Step for the housing industry.
Recently, FHA improved it's "Excellent" ranking by 145%, and Fannie and Freddie, conventional loans improved it's "Excellent" ranking by 45%.
The average credit score for an "Excellent" ranked FHA loan is 697. The average credit score for an "Excellent" ranked conventional loan is 768. The number of "Poor" ranked loans reduced by 66%. The term "Poor" refers to loans that underwriters should have never approved. All things considered, our Giant Step translates to better loan performance.
Better loan performance translates to healthier investments for the secondary market/mortgage investment. Who benefits? We all do. Even though we all get frustrated about how many documents an underwriter needs to verify and support the data it all boils down to better quality control, better performance of the loan, and authentic quality loans. The Giant Step translates to improving the overall reputation of securing money on real estate and improving investment activity.