A growing number of home lenders are lowering their minimum credit scores in an attempt to boost origination volumes that have suffered as interest rates climb.

Until recently, most lenders refrained from lending to borrowers with credit scores far below 600, even when government loan programs like the Federal Housing Administration allowed it. The lenders feared having to repurchase the loans or indemnify the FHA for losses if the borrowers defaulted, not to mention the reputational risk associated with subprime lending in the wake of the housing crash.

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