An effort under way at housing-finance giant Freddie Mac could increase mortgage approvals for borrowers who might otherwise be shut out of home buying.
Freddie has been testing underwriting software from a financial-technology firm, ZestFinance, that could make mortgages more available for certain applicants, including first-time home buyers and minorities, according to people familiar with the matter. The software evaluates consumers’ borrowing and income histories in new ways, the people said.
Does did sound familiar? Did 2008 crashed partly claim by some thing like this? Hope they get better improvements!
Huh...new software that recreates the decision making process that existed at the local level up until automated decisioning became prevalent...brilliant..
How is this not loosening lending standards? You're basically looking at more data to make more people eligible. Moving the goalposts. Clearly we learned nothing from 2008....