Lets talk about home prices, changes to your credit score, and what this means for the market – Add me on Instagram: GPStephan
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NEW CHANGES TO CREDIT SCORES WITH HOME MORTGAGES:
The FIRST, is by using “Alternative Data” to calculate a person’s credit score.
Under this NEW program, Banks would be allowed to take OTHER aspects of a person’s financial history into consideration, such as their average account balance over time, and whether or not they’ve ever over-drafted. In terms of the impact – VantageScore estimated that this would allow credit access to 72,000 more households every single year – opening the door for many more people to gain access to financing.
Second, the Government Housing Agencies, Fannie Mae and Freddie Mac – Have approved FICO 10t and Vantage Scores to be used for home financing.
As MarketWatch explains, “Both FICO 10T VantageScore will look at a broader range of payment history data for borrowers, from cell phone bills to utility and rental payments, to determine credit worthiness” – therefore, making them more inclusive.
And FINALLY, THIRD…these changes would “reduce costs and further promote innovation while not compromising accuracy and predictiveness of a borrower’s ability to repay,”
Or, in other words – these new credit scoring models are “predictive,” meaning – they aim to accurately determine how likely you are to re-pay a loan…and, from their own studies – if you’ve paid your rent on time, you’ve paid your utilities on time, and you’ve paid your phone on time…chances are, you’ll probably pay your mortgage on time…even if you don’t have a traditional credit score.
In terms of my own thoughts, when it comes to credit scores, overall, I’m a fan of anything that promotes more accuracy, and I tend to believe this is a move in the right direction. HOWEVER…there’s certainly the suspicion that banks are simply pushing for fewer restrictions so that they can issue and sell more loans, so I’ll leave that up to you to decide…but, in the big picture: I don’t expect this to have a major influence on the market, and – if anything – this will take some time for lenders to adjust to.
But, at least on the bright side, as one analyst says: “the Fed’s flushing inflation and dumping the punch bowl should lead to a new bull market for stocks, bonds and other risk assets…with a fresh start beginning in 2024, so don’t despair — that’s less than 15 months away.”
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So 4:45 you’re telling me the government is going to know our account balance at all times, its not said plainly but this is concerning
This is going to royally screw people who already manage their finances poorly. It seems this just lets lenders further lend to people living by payment amounts and not cost.
Nice lotus 💗
allowing the gov’t to take over a historically free market situation is usually really bad news.
The first hour trump was in office he made it harder for the average American to buy a home. As someone that lives mostly debt free I don’t have the chance to get good credit. It’s crap that I make close to $7,000 a month and still can’t get a house.
im 18 with a 700 credit score and you are telling me all of that was pointless ?
This video literally compared Vantage 3.0 to FICO. They aren’t equivalent. This was misleading
honestly haven’t been watching many of these vids. I think 28 out of the last 30 or so have a negative thumbnail showing a frown or sad face, red coloring, and fire. guess that is what the people want to see but I am going to avoid it for now and keep on keeping on
I need a crash for real estate, a affordable home would be nice.
let’s fix the housing PRICES please. it doesn’t help if more people qualify for houses they shouldn’t be able to afford. and now that houses are going to be bought more, there will be less on the market raises prices, and more people will be approved to buy them. 2008 anybody?
Whatever happened to China collapsing in 29 days? Been a couple months and I haven’t heard anything more about it 🤔
I like the reversal at the intro
20% interest rates vs poor ppl = forever poor
Overdrafts so private banking information.
Hands.
And this is another segway into the Social Credit Score system.. Just. Like. China.. I’ll pass. I don’t need to keep up with the Jones’s and think people should do their own research and make a very informed decision… Look into Black Rock..
love your content Graham! would appreciate you breaking down ibonds as this seems like an appealing option lately.
How is this going to help inflation? This sounds like 2008 2.0
Does he start the video saying “what’s up Gram it’s guys here” Wtf.
And the government controlling credit scores sounds like a… ding ding ding… it’s a brand new social score!!!!
Haven’t watched a Graham video in a while but he sure does whole lot of hand waving now. Missed the days when he just kept them on the desk while he talked :/, its kinda distracting now.
k, I’m done I’ve reached 5:39 and can’t watch any more random gesticulating.
What could go wrong …
Am I the only person who noticed the date on the articles he is sharing about “no credit score” is from 2015?????? How is that relevant right now?
This is giving governments access to your bank accounts by having it report your balance and over all statements. This isn’t good. This is BAD. Like always, hiding the devil with the cherry on top.
Good info as always. Couldn’t help but notice “what’s up graham it’s guys here “ lol
They gave everyone a loan right before 07 too. Let’s not forget that 🤨
I have rather split opinions on the ‘credit score’ process myself. There was a time I couldn’t get a secured loan, declined because a poor credit rating – because I usually paid cash or only short- term payment plans that were too short to make the ‘reportable credit’ data. I recall one time I tried to get a secure loan, was declined by the loan officer, simply walked to the teller and withdrew the amount out of one of my accounts, then the loan officer asked why I didn’t try to get a secure loan. The same one they just declined due to a poor credit rating. Those who simply don’t want to carry credit balances, wasting money on unnecessary interest payments, get penalized under the FICO credit ratings. So, perhaps this new computation will help those who live with well controlled spending habits, but avoid credit if possible.
I am curious, how can the mortgage companies save money when the Federal Reserve were the ones who raised the interest rates, twice? Mortgage companies are going broke because they had rates go from 3.78% to 7.25% over the past 16 months. Even people with perfect credit scores will be subject to the 7.25 because that is the best rate available unless of course they wish to buy down points out of pocket. Cities and towns throughout my state over valued property values last year to make up for Coronavirus loses thus increased the property taxes to levels in 2022 never ever seen before. Now everyone is putting their homes up for sale because no one can afford the outrageous property taxes and with the new interest rates, well, we no longer have any buyers either. Don’t you just love our Governor’s leadership, they do nothing less than screw the American people so they can personally gain. Thats the new America, one big back room deal after another.
@Sophia Wilfredo Hey Sophia, this 12% fed tax is for what? Levied against whom? Please explain when time allows.
kj
You should read the book the creature from Jekyll island. Very eye opening
Can you say Ponzi scheme for banks?
Because when the billionaires have debt, inflations inflates it away/not the debt value like us peons/genius Ponzi scheme
Then they issue swaps to keep ALL of their books to repackage it and sell it
Thank you for explaining this while conducting an orchestra, Graham
Have you updated your YouTube course? Last I looked it was very outdated information. You recommend people make videos no-longer than 20 minutes which isn’t really a thing on YouTube anymore. Plus, you encourage (or are ok with) people buying subs and views which is against YouTube’s terms since most will be bots, so you’re risking your channel being banned. You even complain in the course than other online courses are often out-of-date. So again, when did you last update the course? This should be updated at very least, once a year since YouTube is always making changes. Also, the line about getting a full refund, no questions asked, and then the further line about it being only if you watch less that 50% is very scammy. I will assume no reply means you know the course is a scam are ok with it or, and that you haven’t updated anything.
I see the plagiarism is back
Why would overdrawing your bank account be in your credit history…. That’s the dumbest idea ever.. the country as a whole is poor… this would only hurt them 😂
Whats up graham its guys here
if your successful with money and you dont know what or how a credit score is thats your own issue even if you have money get loans and just pay them back with the cash you have , its call building credit , there are so many drug dealers in the USA that they cant show income well get loans start paying them off build your credit ,,, why change the model to lets give money and loans to people who have no idea what a credit score is because at the same time they can probably care less if they go bankrupt
Please for the love of god let it crash
-employer of self, spender of cash that i have, no credit
Mortgages getting “easier” and no reliance on credit scores is partially what caused the 2008 crash. In 2008, you didn’t even have to have a job to get a mortgage (no-doc loans), and everyone hoped that the “loaves and fishes” would go on forever, but they didn’t.
Welcome back 🎉
Social Credit Score
I’m the beginning of the video anybody catch that he said “what’s up graham it’s guys here” 🤣
Yes sir. Knowing is everything. I work with people that doesn’t care…
Yeah it’s so they can get you to barrow money at a higher interest rate
Hey Graham! Great content as always. If you were on the market to buy your first personal house in LA, would you buy now and negotiate as hard as possible, or would you wait for a further housing price drop? This house would be your primary home for 5+ years. THANKS AND HOPE YOU’RE WELL!!
What’s up Graham, its guys here… lol
Yeah… But I remember when i went to apply for a loan for a home they counted all those other payments every month as bills which reduces your ability to borrow more money then you would if those weren’t visible to your credit score. Might work for an auto loan or a credit card but its not a good thing when it comes to trying to buy a house.
Well, this is both a good and bad thing. Some people have bad credit scores because they can’t afford their student loans, and opt not to pay them, while others have bad credit scores because they are just dead beats. Things are getting so out of ratio when it comes to income versus expense, the cost of living itself, and the way our economy is going, what are people to do? I think there should be a bad credit amnesty where they wipe away any is any past dues on student loans and things like that and reset the situation. Most people don’t even realize that they are paying for people who haven’t paid their loans in full anyway. It’s like insurance. You may have never made one claim, but you’re rate go up as the market goes up and also as claims come in. I say wipe it all away come on give people a second chance, and that’s it. Keeping people down is going to destroy this country.
Trying to get the poor poorer
Easy money
Easy sales
Duh
I’m smelling 2008 2.0. Also the fed n banks realized that the rental/lease market is only making the market static.
Government backed credit score? Hmm i wonder what all could influence it…
The new credit score system should also consider other important things like if someone is a Trump supporter, conservative, or makes unkind and socially insensitive social media comments that violate the established community standards.
People really believe this dude? “What’s up Graham, it’s guys here.”
“What’s up Graham, its guys here” ^^,
“What’s up Graham it’s guys here.” 0:00
Using your hands so much while talking makes you seem very nervous. You seem to have good information and public speaking. It kind-of distracts from your delivery. I’m sure its habitual. If you cut it in 1/2, you will look more comfortable with moments of your hands clasp together or at rest.
None of this makes any sense 😮
Draconian, opaque entities like the credit bureaus have far too much power over determining the outcome and events of our lives
Did he just say, “Whats up Graham, its guys here”? 😂
THE FED IS NOT A FEDERAL AGENCY !!!!! …….FED NEEDS TO BE DISMANTLED AND REMOVED FROM PRINTING , FROM RAISING INTERESTS & FROM DECIDING TO DEVALUE THE CURRENCY AND KILLING THE LIFE SAVINGS OF THE USA CITIZENS !!!!!!!!
This isn’t resetting the housing market. This is the banks putting people who can’t afford a home into a home so the banks losses can be charged off to the tax payers. Multiply this many times over and that’s the goal.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects cost of living. The fin market;s have underperformed the U. S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $115k any recommendations to scale up my returns during this crash will be highly appreciated
You’re right! The current market might give opportunities to maximize profit within a short term, but in order to achieve this, you must be a professional.
I’m sure the idea of a coach might sound controversial, but new study by investopedia found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic, and based on firsthand encounter I can say for certain that it’s a good idea, I’ve raised over 400k from an initially stagnant reserve of 150K, all within 14months
I’ve actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it’s gained since 2019, mind if I looked-up this one coach you use?
The credit score has never been important for your finances.
You could have an 800 score and be broke, you could have a zero score, and be a millionaire
Here comes the Social Credit program. This is not good news
He saidddd what’s up graham it’s guys here 😅
I’m I the only one who catches him right in the beginning of the video saying, “What’s up Gram, it’s guys here”. Lol might wanna switch the words around.
Why is this channel “oddly satisfying” and only posts brutal poaching hunters that have no respect for the animals they are hunting?
This is not all hunters and whoever is shooting these coyotes and posting them should be ashamed, could’ve easily had a heart shot on this one. Smh
I want the housing market to crash and burn. Too damn expensive. The only way.
2008 all over again.
Did he say what’s up Graham its guys here?
“What’s up graham it’s guys here” lol
Even if you are trying to rent, they pull your credit report. It’s not just buying a house. You might not even qualify to rent in quality housing unless you have a good credit score.
Blackrock and Vanguard will buy up everything when the bubble bursts.
If the government thinks falling house prices is a problem then they are truly enemies of the people.
It’s bu-bu-bu-bu-bubble time! You get a loan, and you get a loan, everybody gets to be a debt slave!
2008 all over again. They never learn.
credit scores are just based off of how well you pay off debt. ridiculous how we are encouraged to take on debt just to be credible to purchase things. It’s totally normal to have debt right? NOT. It’s like the government wants us to fail praying on people to make late payments
Bro do u got a Ford gt just sitting in your house?
So you’re saying there’s another housing bubble, and that ppl should be careful as they could be approved for a loan they technically don’t qualify for, at an higher interest rate? So I should just keep doing what I’m doing, focussing on the retirement accounts and living modestly.
Soft sell of social credit score
Great credit scores from the government. Like China? Like social credit scores.
Loosening requirements on qualifying for a home does not sound like a good idea. That is just my opinion though!
So subprime lones are going to be hand out like nothing which it will just cause another 2008 bubble at some point.
Can some one link me to an actual article?
I have a 730 credit score, 25 years old and had my credit card since i was 18 while never missing a payment. still can’t get any type of lone. have to buy everything cash.
With these changes, as a young adult, should I still get a credit card to do something for a credit score? Is that no longer something that I need to do, and I can just work with debit like I always have?
its stupid you need to use credit card to build up score… as european this doesnt make sense to me when people here never really use a credit card as we dont buy things on credit in the first place
The stock market rally run is over but I don’t know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.
Building a good financial-portfolio is more complex so I would recommend you seek professional support. This way you can get strategies designed to address your unique long-term goals and financial dreams..
I’m sure the idea of a coach might sound generic or controversial to a few, but new study by investopedia found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic and based on firsthand encounter, I can say for certain their skillsets are topnotch, I’ve raised over $400k from an initially stagnant reserve of $150K all within 14months
Roddy Can you leave the info of your investment advisor here? I’m in dire need for one
My advisor is ”Lucy Holden Coyle” In terms of portfolio diversity, she’s a genius. You can glance her name up on the internet and verify her yourself. she has years of financial market experience @Brandy
Graham: Have you watched credit scores on The Fine Print by George Kamel?
5:27 Dave Ramsey refers to that as “manual underwriting“.
9:26 If I suddenly had $1 million deposited into my checking account, my credit score would not go up or down by even one point.
The new scores will give _more_ info, which will probably be good for good risks and bad for bad risks — like people who lay their utilities, rent, phone bills late.
Did he just said at the beginning; “what sup graham it’s guys here..!!” idk if anybody noticed ><)
9:34 two weeks later FTX goes bust😂
I had to see if you really pushed ftx. Truths out now bucko.
The Fed probably got the inspiration from Greedy Stephan’s FTX Ponzi Scheme promotion.
Courage taught me: that no matter how bad a crisis gets, any sound investment will eventually pay off..Educative Video ..
Sad thing is the very word millionaire itself may lose its meaning because inflation.
Please can you leave the info of your investment advisor here? I’m in dire need for one.
@Pierce Jordan thanks for sharing this, I googled the lady you mentioned and after going through her resume, I can tell she’s a pro. I wrote her and I’m waiting on her reply.
Okay and biden is trying to give illegals social security!! WTF is wrong with that guy?!
I’m all for this but I feel like it should be a choose by the customer for instance I don’t like people knowing where I live and I don’t think the banks should know how many guns I have (I don’t mind the government knowing, they will figure it out from me having to pay taxes anyways)
Whats up Graham, guys here…