The Challenge
Between 2001 and 2006, Americans took out nonprime mortgages totaling $2.37 trillion.1  As many as half of all borrowers in nonprime loans could have qualified for a lower-cost mortgage.2  Some borrowers directed to nonprime mortgages simply did not have credit histories that could be judged using an automated process such as a FICO® credit score—because they had never had a credit card, car loan, or mortgage loan. In 2006, more than a million Americans applied for mortgages without having sufficient credit history to qualify through traditional credit scoring.3  The Responsible Homeownership Initiative ( R-HOME) was created to meet this challenge.
1	Sandra L. Thompson, Director, Division of Supervision and Consumer Protection, Federal Deposit Insurance Corporation. Testimony before the Senate Committee on Banking, Housing and Urban Affairs, March 22, 2007.
2	Fannie Mae Foundation, August 2001. "Financial Services in Distressed Communities."
3	Data provided by The First American CREDCO.