Loan applicants can obtain booklet on credit scoring

Real Estate Watch

July 12, 1998

Credit scoring -- the numerical method used to determine the creditworthiness of mortgage applicants -- is being demystified for consumers.

Fannie Mae, the nation's largest source of funds for home mortgages, is publishing a brochure that explains how lenders use credit scores and desktop underwriting to speed up the mortgage process.

The brochure -- "What are Credit Scoring and Automated Underwriting" -- discusses a variety of subjects that include:

* What is a credit score, and why is it used?

* What information is needed to create a credit score?

* How can a consumer confirm that information used to determine a credit score is correct?

According to Fannie Mae, automated underwriting has cut costs, eliminated paperwork and shortened the loan approval process from four weeks to four minutes. To receive the free brochure, call the Fannie Mae Consumer Resource Center at 800-732- 6643. The brochure is also available on Fannie Mae's Web site at: www.homepath.com.

Pub Date: 7/12/98

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