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Home » Store » News » FHA Sees Modest Decline in Average FICO Scores, Higher Average LTV Ratios in 2Q11

FHA Sees Modest Decline in Average FICO Scores, Higher Average LTV Ratios in 2Q11

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Total capital backing the FHA single-family program rose modestly during the second quarter, according to a new report from the Department of Housing and Urban Development, while the demographics of borrowers served by FHA tilted slightly toward those with lower credit scores. For the first time since 2008, the share of new FHA loans for borrowers with scores below 680 edged higher. HUD attributed the change to a drop in lending to high-score borrowers and an increase in purchase-money lending for borrowers with scores below 680. Average FICO scores in new FHA business began to climb in the third quarter of 2008 (662) and...
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