According to a recent article reporting that Wells Fargo is looking to loosen their credit standards and accept down to a 600 FICO score, we have to wonder, “is this a good idea?” I’m personally torn on the subject because I know a lot of people who got caught up on the bad side of the recession and who saw their FICO scores plummet because of debts, short sales, foreclosures, bankruptcy and more.
However, Wells Fargo has almost always been known during my 11-year real estate career to be the most stringent of all the lenders when considering lending credit. Since the loans they’re considering are required to meet FHA insuring standards, it may be a good bet because as we come out of the recession and there are people who, after a 2-3 years, have gotten back on their feet as the employment market strengthens, it would be good to give them a chance to rebuild their lives to the standards they’ve had in the past.
I’m curious what other people’s stances are on the topic, and I’m definitely going to be keeping my eyes and ears open to see if this, indeed, does happen.
