Hearing some rumors that mid score could be going up?? San Antonio, Texas

Heard some rumors this past week from one of my lenders that the mid score could be going up from 620 to 640 in January 2010. This is not a way to bring our housing industry out of the proverbial mud we are stuck in. Mortgage brokers and banks need to figure out a way to stop punishing our industry by making it harder and harder to get a loan done. It already takes underwriters 7-10 days to look at a file.

This and the fact the banks namely Bank of America has managed to show a profit and has paid back the tarp money they borrowed from the US government. I am being told that this rumor is based on a trend that lenders follow and that is the refi business. Refi's have started requiring a 640 mid score. The only good news if any is the fact that Fannie has to approve this increase. If Fannie has any reason to turn this down, it should be that lenders are still borrowing money from the feds at a 0% interest rate and charging a 5.5% rate as of Friday to get a loan..

There was a lot of finger pointing the last time around. I am not here to say it is wrong to make a living or build their business. What I am saying is don't make it look so obvious that this is one sided. Banks went from lending money like it was water to almost turning off the faucet!

Think about the group as a whole and we can all prosper..