NUTS & BOLTS
CREDIT SCORING
The Investor’s Guide to Building a Full Credit Picture CREDITWORTHINESS IS AN EVOLVING CONCEPT.
by Carole VanSickle Ellis
eal estate has always been about credit, even before Congress cre- ated Fannie Mae and Freddie Mac in 1938 and the wheels were set in motion to create today’s extremely credit-de- pendent home-lending environment. As far back as the 9th century, lords R
of the manor on feudal estates docu- mented rents collected (and associated timeliness) from residents. Of course, the evaluation process for tenants and borrowers has evolved dramatically since feudal times. More recently, thanks to technological advances
and social and cultural evolution, the concepts of credit and creditworthiness in 2018 are far different even than they were just two decades ago. Investors need a keen eye and refined ability to strategize and interpret data accurately to leverage today’s plethora of credit
38 | think realty magazine :: september 2018
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