Mortgage lenders including Wells Fargo & Co. and Bank of America Corp., the two largest, have raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620. About 6.3 million people fall within that range, according to FICO, which created the formula for the ratings.

A welcome change but it will not help the housing market to recover quickly. However, it may deny potential homebuyers who in the first place were risky customers anyway.

[Link to Home Buying Gets Tougher as Lenders Restrict FHA Loans]