It’s no big secret that insurance companies have rated certain areas or neighborhoods a better risk in terms of lower payoff than others. Home insurance policies will be cheaper for some neighborhoods vs. another based on this risk factor. Countrywide Homes Loans, and some other lenders are starting to do the same thing.

They created a ratings index and are ranking markets across the country. The higher the rating the more the market is showing a pattern of declining property values and oversupply. This makes it riskier for the lender to provide loans in those areas. They may require money down in those areas. Before you think this is unique to Countrywide, GMAC and Fannie Mae, are using a similar model for loans originated after January 15th, 2008.

Marion and Polk county Oregon are rated “1” which is a good risk. We should not have those additional requirements here, but it may impact those of you that are relocating to other areas. To access Countrywide’s Soft Market Index ratings, click here.

Related posts:

  1. Is your neighborhood healthy?
  2. Annual Market Trend
  3. Selling in a buyer’s market