About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

New FICO Score Model could help Home Buyers

As a Realtor helping clients find their next home, you know how important a FICO score can be.

Most home loans are predicated on the FICO score of the buyer and the difference between a good score and one that’s not so good can result in a higher interest rate or no loan at all.

That’s why the news from Fair Isaac Corporation (FICO) on August 7, 2014 was good for both homebuyers and Realtors.

Removing Medical Debt Points
The new FICO Score 9 will no longer count medical debts as it did in previous iterations. Some experts feel that this move of treating medical debt differently than regular consumer debt may make the new FICO scores more precise.

Ready for rollout this fall, the newer FICO scores also remove any overdue payment notices if the debt has been settled. According to dailyfinance.com, the current model means a collection generally stays on a credit report for seven years even if it is paid off. This is the same amount of time bankruptcies and foreclosures stay on a report. Now, consumers will see their paid collections being removed from their credit reports.

A Boost for Buyers
FICO predicts that these changes may boost some consumers’ scores up 25 points. This can make a big difference when shopping for a mortgage or home loan. FICO scores are based on a 300- to 850-point scale.

The New York Times.com reports that for consumers to see any benefit, lenders have to adopt the new scoring techniques. FICO last introduced a new model, called FICO 8, in 2008. Since then, FICO said that about half of its customers had started using that model.

Help for Lenders
“The advances in FICO Score 9 provide significant incentives for lenders to upgrade from earlier versions of the FICO Score,” Jim Wehmann, executive vice president for Scores at FICO said. “U.S. lenders can more consistently and precisely assess new applicants and existing accounts with a more robust credit score built on the most current credit data available, while minimizing operational hurdles associated with adoption and compliance. We stand ready to help lenders make that upgrade as smoothly and quickly as possible.”

Courtesy of The Virginia Association of REALTORS®

About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.