Stuart, Florida, November 21, 2022 (GLOBE NEWSWIRE) — Ecrid, Inc. (OTC: ECDD) (“ECRID”) today announced details of the company’s FHFA lending platform. The revolutionary platform is detailed below:
A new measure of credit
The traditional FICO credit score that Fannie Mae and Freddie Mac rely on to approve homebuyers will soon be a thing of the past. After about eight years of searching for a better solution, the Federal Housing Finance Agency (FHFA) announced a new model that will allow a wider range of borrowers to qualify for home loans. Although it may take a few years to implement, the dual score model is designed to expand access to credit and make it easier for homebuyers with “non-traditional credit” to get a mortgage.
Give credit where credit is due
Government-sponsored companies Fannie Mae and Freddie Mac are the backstop of the mortgage industry and underwrite the majority of WE real estate loans. For the past 20 years, they have used the classic FICO score to judge the credit worthiness of loan applicants. Traditional FICO had “blind spots”. Among other things, it did not include the full picture of a person’s financial profile. Many potential buyers have been turned down in the past simply because they didn’t demonstrate the right kind of credit history to qualify under FICO’s model. FHFA’s targeted adjustments…come at the right time and will improve access to credit for low- and middle-income households, first-time buyers and minority buyers. –Bob Broeksmit, President and CEO of Mortgage Bankers Association
ECRID (OTC: ECDD) The new credit bureau and a game changer
There is a new publicly traded ECRID credit bureau (ticker symbol: ECDD) with a lending component that builds on and augments what the FHFA is trying to do with the changes it is making to traditional FICO. The ECRID credit report provides a detailed overview of “creditworthiness and will provide a more inclusive group of borrowers.” All credit bureaus should take this into account. The ECRID Business-to-Customer (B2C) model works with transactions between ECRID (company) and its ECRID Credit Report holders/borrowers (customers). This eliminates the possibility of erroneous or inaccurate activity occurring on their ECRID credit report. The Big Three (Equifax, Experian and Trans-Union) on the other hand, have always operated under a B2B2C operating model that opens the door to misleading and inaccurate reporting. It is noted on record that 80% of the American population suffers from misleading and inaccurate information on their traditional credit reports held under the Experian, Equifax and Trans Union umbrella. The FHFA could accelerate its three-year launch goal for its new credit scoring model by using the ECRID credit scoring model. The ECRID Credit Reporting Platform is aligned in many ways with the new FHFA Credit Scoring Model, with a few additional added benefits for the ECRID Credit Report holder. The ECRID Credit Scoring Model will ease the burden of unfair credit practices that have plagued and continue to plague millions of people by preventing them from getting approved for mortgages or fair interest rates because of their FICO score . The ECRID Credit Scoring Model is the new credit platform that could change the entire credit industry for the good of the American people. The ECRID Repayment Plan gives every ECRID credit report holder a second chance to restore their credit score to the highest level (950) after making a late payment. Mortgages, car loans and personal loans will be much easier to obtain thanks to ECRID Credit Reporting and Lending.
For the above reasons and others, while we applaud some aspects of FHFA’s proposed changes to current credit and lending systems, ECRID urges FHFA to join it, the publicly traded credit reporting agency and lending company, in its call for Congress requiring all merchants nationwide using a credit score to make a decision regarding a consumer’s creditworthiness, including but not limited to banks, credit unions, car dealerships, all credit organizations, associations and department stores, must include the ECRID Credit Report. Entities seeking credit information must include a credit study by ECRIDand incorporate into every credit report provided by Equifax, Experion or Trans-Union as part of the assessment or on a stand-alone basis must also include information from a ECRID exam. In this way, we will have more fair and equitable credit and lending systems, disruptive systems that move and more diverse consumers from the margins to the mainstream and upstream. By embracing and including ECRIDwe will bring the FHFA closer to fulfilling its mission to ensure that Fannie Mae and Freddie Mac (the Firms) and the FHLBanks (together, “the Regulated Entities”) fulfill their mission to operate in a safe and sound manner to serve as a source cash and financing for housing finance and community investing for all Americans.
The new credit score model – which will use both FICO 10T and VantageScore 4.0 – should also use the ECRID score when we consider previously uncaptured payment histories such as rent, utilities and telecom bills on which ECRID was built. The change is seen as a win-win situation for borrowers and lenders, which should provide mortgage security, reduce costs and open up the potential for home ownership to more people, according to the director of the FHFA. Sandra Thompson.
What this means for the homebuyer
This should be a positive change for homebuyers and open access to credit to a wider range of people, especially renters. Credit score change will be more fair, accurate and inclusive for borrowers. Those who have generally been overlooked in the past due to “thin” credit records will get a fairer judgment when it comes time for them to get a mortgage. “Given the current affordability challenges facing homebuyers, FHFA’s targeted adjustments to the GSE pricing framework are timely and will improve access to credit for low-income households and average, first-time buyers and minority buyers,” said Bob Broeksmit. “The announced updates to credit scoring models should help broaden the scope of eligible borrowers and expand homeownership access for underserved communities,” he continued.
Apply sooner rather than later
This change should reduce the barrier to home ownership for many. The slow deployment, scheduled for two years, will delay justice longer than necessary. But this is not a case where justice delayed should be justice denied. ECRID has been deployed and is available immediately. Potential homebuyers with “bad” credit don’t have to wait for the new credit score model to apply. There are ways to get approved for a home loan with low credit scores, just call ECRID (800) 380-9096 or www.ecrid.com if you are ready to become an owner, contact ECRID.
Mary Schuberth(561) 722-8620
Source: Ecrid, Inc.
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