January 2016 - Out of the Woods

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 8 of 67

TH E M R EP O RT | 7 MDWELL Mortgage originations in the housing market rose significantly in 2015, thanks to the positive overall credit picture in the U.S. N ew data from Experian's State of Credit study showed that mortgage originations increased by 42.5 percent over the last year. According to the report, the national VantageScore rose three points—from 666 to 669—over the past year and is up by five points since 2013. The Vantage - Score is a credit score that was developed by the three national credit reporting companies (CRCs)—Experian, TransUnion and Equifax. "If I were to give a grade to the overall picture of credit in the United States, I would give it an A-minus," said Michele Raneri, VP of analytics and new business development at Experian. "I'm optimistic about the state of credit, as we are seeing more loans being extended, late payments are decreasing, and consumers are continuing to gain more confi - dence in originating loans." According to the Experian data, Minnesota had the highest average credit score, with three of its cities—Mankato, Rochester, and Minneapolis—occupying the top three spots with average scores of 706, 705, and 704, respectively. U.S. Cities with the Highest VantageScores 1. Mankato, Minnesota Mankato, Minnesota homeown- ers will have no trouble getting a home loan, with an average VantageScore of 706 among consumers. This city also hosts an average debt of $27,374. 2. Rochester, Minnesota Another Minnesota city made the list, occupying the second place spot. In Rochester, Minnesota, the average VantageScore is 705 and consumers have an average debt balance of $27,480. 3. Minneapolis, Minnesota Minnesota once again made an appearance in the top three cities on the list, with Minneapolis com- ing in third place, with an average VantageScore of 704 and average debt of $29,094. 4. Fargo, North Dakota Fargo, North Dakota took fourth place in terms of VantageScores in U.S. cities, with average VantageScores reaching 702. In addition, this city's average debt totals a whopping $29,545. 5. Wausau, Wisconsin With an average score of 702, Wausau, Wisconsin wraps up the top five list of cities with the highest VantageScore. This area has an average debt balance of $25,873 among consumers. U.S. Cities with the Lowest VantageScores 1. Greenwood, Mississippi In Greenwood, Mississippi getting a mortgage may prove challeng- ing as the average VantageScore is 612—the lowest in the U.S. Consumers are also burdened down by an average debt of $27,883. 2. Albanay, Georgia Albany, Georgia was second on the list, with an average credit score of 622, proving a challenge for potential homebuyers. The city also has an average debt of $29,217. 3. Riverside, California With an average VantageScore of 624, Riverside, California came in third place. The average debt bal- ances here total $28,912. 4. Harlington, Texas Offering little relief for those seeking to buy a home, Harlingen, Texas has an average credit score of 628 and an average debt of $28,801. 5. Laredo, Texas Texas once again made the list, wrapping up the top five, with Laredo, Texas reining in an aver- age VantageScore of 633. Laredo consumers also have an average of $27,720. Originations are on the Rise, and We Have Higher Credit Scores to Thank for it 1 2 3 4 5 1 2 4 5 3 Source: Experian's annual "State of Credit" report TH E M R EP O RT | 7

Articles in this issue

Archives of this issue

view archives of TheMReport - January 2016 - Out of the Woods