FHA analyzes the fresh new borrower's credit using its Overall home loan scorecard you to definitely considers numerous, mathematically high borrowing from the bank attributes from inside the granting a beneficial borrower's borrowing from the bank otherwise it comes this new borrower getting instructions underwriting where in actuality the underwriter will get determine that compensating situations are present that guarantee the borrower's approval getting borrowing

HUD Impulse: FHA disagrees with this particular opinion. Basic, FHA is not replacing the strict underwriting criteria. FHA provides avoided the big losings now-being suffered throughout the subprime financial arena because FHA requires, and can always require, full papers off good borrower's income and you can credit. Finally, the same as virtually any industry groups, including individual financial insurance firms, loan providers, therefore the Government Reserve, FHA takes into account credit scores as extremely predictive out-of debtor performance, actually during this time out of monetary and housing market be concerned.