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NovaStar Mortgage Inc. here has streamlined its underwriting guidelines, eliminating consumer credit history as a consideration.
Instead, noted Dave Pazgan, senior vice president of the eastern division of NovaStar, brokers submitting to the company need only to look at the borrower's mortgage payment history and the FICO score.
Part of the reason for dropping consumer credit history is an effort to qualify more borrowers, he said. Many people did not have enough...