Payment history and debt totals are important parts but not the only factors in determining your FICO Score.

When it comes to Credit Scores, FICO is most common. Regardless of what credit report you obtain most people will refer to your credit score as your FICO Score. Almost all banks or Lenders in the United States use FICO scores to decide whether to offer credit to potential borrowers and at what interest rate. FICO has a major global presence, as well: According to the company's testimony before a House Financial Services Committee, FICO Score are used in about 10 billion decisions worldwide each year. Did you catch that, 10 BILLION.

So how does FICO or the correct name Fair Isaac Corporation, come up with its widely used score?

Mortgage rates have slowly begun to rise just as the spring home-buying time nears. This could be perilous to the recovery in housing markets.

Mortgage finance company Freddie Mac said that the average rate on a 30-year home loan this week in the U.S. jumped to 5.21 percent, from 5.08 percent last week. It represents the highest rate for 30-year mortgages since Aug. 13, nearly eight months ago.

In early December, the rate stood at 4.71 percent, a historic low.

By now you have probably heard by now that Congress passed HR 3590, the “Patient Protection and Affordable Care Act”, or to put it more short and to the point, the “health care overhaul”. This law was then signed by the President.

Also passed by the US House of Representatives was HR 4872, the “Health Care and Education Affordability Reconciliation Act of 2010“, which makes changes to HR 3590. To the average person this probably makes no sense. Why pass a bill and then have to pass an amendment right away? Why not fix the original bill? It's all about Politics!! As soon as the President signs HR 3590 into law the Senate will take up debate on HR 4872 and will only need a simple majority (51) of the Senate for passage. If the Senate does approve this bill as written it will then go to the President to be signed into law and will amend the “Patient Protection and Affordable Care Act”. Right now the Republican Party is trying to derail the Amendment.

FHA Amends Anti-Flipping Rule


On January 15, 2010, FHA made some changes to the June 7, 2006 anti-flipping policy on property flipping.

For the past 3 1/2 years HUD has not allowed the resale of a property within 90 days due to flipping concerns. While the initial intent was to prevent the rapid escalation of the price of homes through questionable flipping of properties, it is now hindering the sale of homes since prices have fallen and more properties are the subject of foreclosure.

While there were several exemptions to the rule, almost all applied to Banks and Financial companies. This change will directly impact the small investor who buys properties cheaply and repairs them for resale.

The Wall Street Journal had a recent article titled, “Default, then Rent”.   What is going on with people values?