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Oklahoma County housing finance staff to ask US Bank about lowering credit minimum after 0% delinquencies
Summary
Trustees heard that the county's approved lender list has grown to nearly two pages, rolling 12-month lending is about $31 million with 0% delinquency, and staff will ask US Bank whether the minimum credit score for down-payment assistance can be lowered to 640.
Oklahoma County trustees heard an update on the county's housing finance program that showed a growing approved-lender list, a rolling 12-month lending volume of about $31,000,000 and 0% delinquency over the period.
Housing finance staff told trustees the approved lender list has expanded to nearly two full pages and that October and December were the program's largest months last year. The presenter said the program remains on track for roughly $31 million in rolling 12-month volume and reported no delinquencies.
The presenter said a town-hall attendee asked why the program's minimum credit score is not 640. The presenter said the underwriting standard has been lowered once already but asked trustees for permission to ask US Bank whether the minimum credit score could be lowered again; trustees granted that request. "When you have 0% delinquencies over 24 months ... that accounts for 2 things," the presenter said, arguing that low delinquency could reflect both a strong economy and possibly strict underwriting standards.
Staff also described technical and operational items: lenders currently must retrieve rate sheets from the eHousing lender portal; staff said they would try to automate delivery of daily rate sheets to lenders if the eHousing system will allow it, or build an alternate method if necessary.
Trustees and staff discussed program underwriting history and price adjustments. One trustee asked about the impact of prior rate reductions; staff said the drop from 6.60 to 6.40 (percent) was the last reduction and summarized production by loan type, saying the program had done no conventional loans in one year range and had completed 15 government loans in a set period (15 of 142 total loans in the referenced year-to-year comparison).
After the meeting reconvened from executive session, a board member commented that county contributions to the program currently run about 3% and suggested the board might consider gradually reducing that subsidy next year to move toward revenue neutrality; no formal action was taken on that suggestion at the meeting.
The update contained no statutory citations. Staff identified next steps as: (1) confirm with US Bank whether a lower minimum credit score is possible and (2) pursue automation of rate-sheet distribution to lenders.
