I recently received a Facebook post from my nephew about a problem he was having applying for a mortgage. He is an executive at a Fortune 500 company and his wife is an attorney. Both are employed and have high paying jobs. Their credit scores are excellent. So what is the problem? Apparently, not having a land line telephone number prohibited them from completing the application form.
Many younger people do not have a land line these days. We are living in a cell phone generation; an unused landline is simply considered a waste of money. Why have one since most communication is done on their cell phones.
Our banking system was brought to its knees by the mortgage crisis which was caused by lending institutions applying ridiculous standards for loans that allowed almost anyone to get a loan regardless of their credit worthiness.
Now we are operating on a set of lending criteria that was developed in the last century. It is obvious to anyone with half a brain that the standards need to be brought current with the times and credit scoring for loans and mortgages need to be updated for the world we live in today.
What can you do about this? Write your congressperson and your state banking commission. Ask them to create regulations that require banks and other lending institutions to update their criteria at least every decade so they accurately reflect credit scoring for our current society and its population.
Just for the record, I am a dinosaur and I have not one but two land lines, one for voice calls and one for faxes. I also have a cell phone. I don’t think this makes me anymore credit worthy than my nephew.