Poor credit history is still the most cited reason for denying a government-backed, purchase-loan application although collateral appears to be gaining traction due to depressed home values and underwater mortgages, data reported by lenders under the Home Mortgage Disclosure Act indicated. The latest HMDA data showed that 25.0 percent of FHA/VA home purchase loan applicants in 2011 were turned down because of credit history issues, perhaps reflecting tighter FHA underwriting and lenders’ credit overlays, which have resulted in average borrower credit scores of 720 and above on new endorsements. Average borrower credit scores for fully underwritten FHA loans, for example, held steady at ... [1 Chart]