The Federal Housing Administration announced Monday, a new method that will be used to evaluate the lending practices of FHA-approved lenders and help them understand the type of borrowers they are serving.
The new method, FHA’s Supplemental Performance Metric, will work jointly with the agency’s existing compare ratio and offer different insight into a lender’s specific performance while encouraging lenders to serve eligible borrowers that are not necessarily credit worthy. FHA lenders will be able to see the impact of their business at all ends of the credit spectrum with the new supplemental performance metric. This will fall in line with the FHA’s willingness to insure loans to eligible borrowers with lower credit scores.
First-time homebuyers in the market today are waiting longer periods of time to purchase a home and are less likely to be married compared to first-time buyers in the 1970s and 1980s, according to a Zillow analysis released Monday. The Zillow study found that Americans are renting for an average of six years before buying their first homes. Meanwhile, in the 1970s, they rented for an average of 2.6 years. In the late 1980s, 52 percent of first-time homebuyers were married, while today, only 40 percent were married.