A press release (HUD No.10-016) from the U.S. Housing and Urban Development Department (HUD) Federal Housing Administration (FHA) dated January 20, 2010 is titled, “FHA Announces Policy Changes to Address Risk and Strengthen Finances.”
The release states: “New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.”
From: Greg Fisher
Sent: Saturday, October 03, 2009 7:28 AM
To: newu@uci.edu; newuopinion@gmail.com
Subject: credit score, employers, New University
You wrote, “Employers increasingly run credit checks on prospective hires; a high score is seen as an indicator of reliability.”
Who is your source regarding credit score use by employers?
See Credit scores used by employers: Believers and Nonbelievers.
Now, only categorized in the influence > government directory, this topic deserves its own section. FICO, USA Today, the U.S. Treasury Department, Federal Reserve, EEOC and many others communicate a similar message: Watch out— credit scores are used in employment screening. But, when contacted, the various media, government agencies, associations and consumer advocates (they all look the same; on the Internet, nobody knows you’re a bureaucrat) come up short when asked for their sources.
So, what’s the big problem with that? The credit bureaus say that they don’t sell scores to employers.
What is a credit score? gives consumer reporting industry and federal government definitions for the term credit score.
Experian: 15 definitions on 7 websites. Takes the prize for the most shelf space and elegant variation.
Equifax: Among others, gives the FICO score definition. Discord with TransUnion over what period FICO predicts.
TransUnion: Typographical error in FAQ.
FICO (the artist formerly known as Fair, Isaac and Fair Isaac), U.S. Treasury, HUD, FTC, FDIC and FCIC finish the set.
“We know that an economy built on reckless speculation, inflated home prices, and maxed-out credit cards does not create lasting wealth.”
U.S. President Barack Obama, March 24, 2009