|
Then things changed.
Lenders studied the relationship between credit scores
and mortgage delinquencies. There was a definite relationship.
Almost half of those borrowers with FICO scores below 550
became ninety days delinquent at least once during their
mortgage. On the other hand, only two out of every 10,000
borrowers with FICO scores above eight hundred became delinquent.
So lenders began to take a closer look at FICO scores and
this is what they found out. The chart below shows the
likelihood of a ninety day delinquency for specific FICO
scores.
|
FICO Score
|
Odds
of a delinquent account
|
|
|
|
|
|
|
595
|
2.25
|
to
|
1
|
|
600
|
4.5
|
to
|
1
|
|
615
|
9
|
to
|
1
|
|
630
|
18
|
to
|
1
|
|
645
|
36
|
to
|
1
|
|
660
|
72
|
to
|
1
|
|
680
|
144
|
to
|
1
|
|
700
|
288
|
to
|
1
|
|
780
|
576
|
to
|
1
|
If you were lending a couple hundred thousand dollars,
who would you want to lend it to?
copyright 1999 by Terry Light and RealEstate
ABC, revised 2002
|
