ECRID
Offers Federal Housing Finance Agency (FHFA) Credit & Lending
Platform to Immediately Assist Low-Credit and No-Credit Home
Buyers, and Others
Stuart, Fl -- November 22, 2022 -- InvestorsHub NewsWire --
A New Measure of Credit
The traditional FICO credit score that Fannie Mae and Freddie
Mac rely on to approve home buyers will soon be a thing of the
past. After about eight years of working toward a better solution,
the Federal Housing Finance Agency (FHFA) announced a new model
that will make it possible for a wider range of borrowers to
qualify for home loans. While it could take a few years to
implement, the dual-score model is designed to expand credit access
and make it easier for home buyers with "non-traditional credit" to
get mortgage- qualified.
Give Credit Where Credit is Due
The government-sponsored enterprises Fannie Mae and Freddie Mac
are the safety net of the mortgage industry and guarantee the
majority of U.S. home loans. For the last 20 years, they used the
classic FICO score to help judge the creditworthiness of loan
applicants. Traditional FICO had some "blind spots." Among other
things, it did not include the entire picture of a person's
financial profile. Plenty of would-be home buyers have been denied
in the past, simply because they didn't demonstrate the right type
of credit history to qualify under FICO's model. FHFA's
targeted adjustments... are well-timed and will improve access to
credit for low- and moderate-income households, first-time buyers,
and minority buyers." –Bob Broeksmit, President and CEO of the
Mortgage Bankers Association
ECRID (Stock
Symbol: ECDD) The New Credit Bureau and a Game
Changer
There's a new publicly traded Credit Bureau ECRID (Stock Symbol: ECDD) with a lending component
that builds on and augments what FHFA is attempting to do with the
changes it is making to the traditional FICO. The ECRID Credit
Report provides an expansive snapshot of "creditworthiness and will
yield a more inclusive pool of borrowers. All credit bureaus
should take notice. The ECRID Business-to-Customer (B2C)
model operates with transactions
between ECRID (business), and its
ECRID Credit Report holders/Borrowers
(Customers). This eliminates the possibility of erroneous or
inaccurate activity ever occurring on their ECRID Credit Report.
The Big three (Equifax, Experian and Trans Union) on the other
hand, have always operated under a B2B2C operation model which
opens the door for erroneous and inaccurate reporting. It's noted
on record that 80% of the American population suffers from
erroneous 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 their new
credit scoring model by using the ECRID Credit Scoring Model. The
ECRID Credit Evaluation Platform is aligned in many regards with
the FHFAs new Credit Scoring Model with some additional added
benefits for the ECRID Credit Report Holder. The ECRID Credit
Scoring Model will ease the burden of the unfair credit practices
that have plagued and continue to plague millions by preventing
them from getting approved for mortgages or fair interest rates due
to their FICO score. The ECRID Credit Scoring Model is the new
Credit Platform that could change the entire credit industry for
the betterment of the American People. ECRIDs Redemption Plan gives
every ECRID Credit Report Holder a second chance to restore
their credit score at the highest level (950) after making a late
payment. Mortgages, Auto Loans and Personal Loans will be a lot
easier attained through ECRID Credit Reporting and
Lending.
For the above and other reasons, while we applaud aspects of the
modifications proposed to the current credit and lending systems by
FHFA, ECRID urges FHFA to join it, the publicly traded credit
bureau and lending corporation, in its appeal to Congress to
mandate that all merchants nationwide utilizing a credit evaluation
to render a decision regarding creditworthiness of a consumer,
including but not limited to, banks, credit unions, auto
dealerships, all lending institutions, organizations, associations,
and department stores, must include the ECRID Credit Report.
Entities seeking credit information must include a credit review by
ECRID, and incorporate into every credit review provided by
Equifax, Experion, or Trans Union as a part of the evaluation or as
a stand-alone must also include information from an ECRID review.
In this manner, we will have more just and equitable credit and
lending systems, disruptive systems that will move and more divers
consumers from the margins to the mainstream, and up stream. By
embracing and including ECRID, we will move FHFA closer to
realizing its mission of ensuring that Fannie Mae and Freddie Mac
(the Enterprises) and the FHLBanks (together, "the regulated
entities") fulfill their mission of operating in a safe and sound
manner to serve as a reliable source of liquidity and funding for
housing finance and community investment for all
Americans.
The new credit score model — which will use both FICO 10T and
VantageScore 4.0 — should use the ECRID Score as well when we
account for previously uncaptured payment histories like rent,
utilities, and telecommunication bills upon which ECRID was built.
The change is seen as a win-win for borrowers and lenders, expected
to keep mortgages safe, reduce costs and open homeownership
potential to more people, according to FHFA Director Sandra
Thompson.
What This Means For The Home Buyer
This should be a positive change for home buyers and open credit
access to a wider range of people, especially renters. The change
in credit scoring will be more equitable, accurate and inclusive
for borrowers. Those who have typically been overlooked in the past
because they had "thin" credit files will get fairer judgment when
it's time for them to get a mortgage. "Given the ongoing
affordability challenges facing homebuyers, FHFA's targeted
adjustments to the GSEs' pricing framework are well-timed and will
improve access to credit for low- and moderate-income households,
first-time buyers, and minority buyers," said Bob Broeksmit. "The
announced updates on credit scoring models should help broaden the
scope of eligible borrowers and expand access to homeownership for
underserved communities," he continued.
Apply Sooner Rather Than Later
This change should lower the barrier to homeownership for many. The
slow pace of the rollout, an expected two years, will delay justice
longer than necessary. But this is not a case in which justice
delayed needs to be justice denied. ECRID has rolled out and
is available immediately. Potential home buyers with "iffy" credit
don't have to wait for the new credit score model before applying.
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're ready to become a
homeowner, reach out to ECRID.
About ECRID
ECRID came to market to transform the financial lives of every
American who needs a second chance of becoming credit worthy. The
company has created an innovative fintech platform providing
opportunity for individuals and families to regain their financial
footing and build wealth in spite of a past bankruptcy, judgement,
collections or lien. Second chances have been created to get each
ECRID Member financially healthy through this new Innovative
fintech platform.
FORWARD-LOOKING STATEMENTS: This release
contains "forward-looking statements." Forward-looking statements
also may be included in other publicly available documents issued
by the Company and in oral statements made by our officers and
representatives from time to time. These forward-looking statements
are intended to provide management's current expectations or plans
for our future operating and financial performance, based on
assumptions currently believed to be valid. They can be identified
using words such as "anticipate," "intend," "plan," "goal," "seek,"
"believe," "project," "estimate," "expect," "strategy," "future,"
"likely," "may," "should," "would," "could," "will" & other
words of similar meaning in connection with a discussion of future
operating or financial performance. Examples of forward-looking
statements include, among others, statements relating to future
sales, earnings, cash flows, results of operations, uses of cash
and other measures of financial performance. Because
forward-looking statements relate to the future, they are subject
to inherent risks, uncertainties and other factors that may cause
the Company's actual results and financial condition to differ
materially from those expressed or implied in the forward-looking
statements. Such risks, uncertainties and other factors include,
among others such as, but not limited to economic conditions,
changes in the laws or regulations, demand for products and
services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward-looking statements.
Any forward-looking information provided in this release should be
considered w/ these factors in mind. We assume no obligation to
update any forward-looking statements contained in this report.
Contact
Maria Schuberth
(561) 722-8620
ECRID.com
(800) 380-9096
support@ecrid.com
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