Same Game, Different Rules

At a recent Aggie basketball game I noticed that the three point line is a little bit farther back from where it used to be. The next day, after doing a little bit of research, I found out that it had in fact been moved back one foot to 20 feet 9 inches. Apparently, the NCAA basketball rules committee made the decision based on the rationale that it would "open up the game", force teams to play more defense away from the basket, and assist in the "problem of rough low-post play". I also imagine it will help college players prepare for the next step to professional basketball overseas or even the NBA, where the 3 point line measures 23 feet 9 inches. Whatever the benefits or consequences might be, one thing that is certain is that coaches will have to adjust their strategies to the new rule. They might have to change the way they play zone defense or make a decision on which players are still allowed to shoot the 3-point shot. The teams that will be most successful are the ones that can use the new rule to their advantage.

Just like college basketball, the mortgage industry has had some rule changes as well. The credit score requirements have been moved up a little bit, The down payment requirements have been moved up a bit, up to 3% minimum(except on Rural Housing, VA, and the Utah Housing loan), and the referees of the mortgage business, or underwriters, have become more vigilant of the overall strength of a loan file. It is still the same game but we just have to adapt our strategies a little bit. One strategy is to take advantage of the numerous government sponsored loans, such as the various FHA loans, the Rural Housing loan, the Utah Housing loan, and the VA loan for veterans. Oftentimes, especially with FHA, these loans can help borrowers with shaky credit still qualify for a home loan with a low interest rate, just as long as there is sufficient evidence for their ability to repay the loan. If a home loan applicant has a 720+ credit score and 10% down, than the conventional loan is still an excellent strategy as well. With these government sponsored loans, most home loan applicants that were able to qualify over a year ago would still be able to qualify today.

In 1987 college basketball introduced the 3-point line for the first time ever. It was a huge change that forced teams to adapt or fail. In that same year, Rick Pitino took an undersized and nonathletic group of players from Providence University to the final four by utilizing the 3 point line to their advantage. They made the most 3-pointers of any team that year at over 8 per game (See The 3 Has Changed Strategy, Player Evolution). In that same year, interest rates on a 30 year mortgage averaged over 10%. Just like in 1987, those that can adapt are those that will experience the most success.