A friend asked me what is a good FICO score.  I don’t remember what the acronym means but it is a score given  you by a credit rating agency based on your previous record for borrowing.  I simply replied, “FICO is a scam.”  The scores are almost irrelevant since they can be skewed by a whole raft of erroneous reports either to your betterment or detriment.  My report from one of the major rating agencies runs more than 55 pages.  I would never read it and submit that in that much dross there must be some errors that either make me a good risk or bad risk. 

My friend went on to say that she was mad at her credit union.  It seems she presented it her request for a mortgage to buy a home showing that she had had two previous mortgages with the union that were long since paid off on time, a size-able CD at the union, a steady income, and a FICO score of 850.  The credit union replied that they would give a mortgage for a maximum of 50% of the home’s price.  I asked if she had told them to stuff it and stormed out of the place since their offer was a gross insult.  She said no.

Obviously this paltry amount for impeccable credentials, including a FICO of 850, means lenders are still not willing to adjust their lending standards to something approaching realistic levels.  And as long as they take this rigid stance the housing market will continue to stumble along.

Maybe President Obama should devote all his “stimulus” request to making home loans more affordable.  But this is what most consider to have been the cause of our economic doldrums. 

I once more state, we will not return to the economic heights we reached by 2007 without returning to massive amounts of credit, including affordable home loans.