Mortg. inquiries...uh, what gives?

The same thing happened to me when I went for my home mortgage. My lending company pulled each report twice in one day, pulled it once a month later, and then three days in a row (a week prior to settlement). This took place over 4 months. I was livid when I found out. All of the inquiries were hard.
After I moved in I contacted the broker and basically said, remove them or transfer them to AR. She was nice enough about it and sent letters to the 3 bureaus. Experian is the only one reporting them correctly. Equifax is reporting 1/2 of them correctly, and TU...ugh!
I would contact the broker now and question the reason for the excessive number of inquiries. Ask him or her how many more times do they expect to pull your report and could they do an AR because it is hurting your score.
Before I went for a mortgage I thought the average # of inquiries pulled was two. One for loan approval, and another one prior to settlement (this is for each bureau). Don't be like me and wait until the last minute to find out. Contact them now and question why they are doing this and if there is a way around it.

Good luck.
Dani

 

I never have sought a mortgage but is it possible that they keeping pulling hard inquiries to lower your score. By lowering your score they could charge a higher APR? And they can prevent you from seeking credit elsewhere? Just a thought.

 

Wow Killer, you might have something there! That would be so aweful if it's true!!

 

Mortgage inquiries that are that close together are not suppose to count as separate inquiries. This is to allow people to search for rates without being penalized. If they are counting as separate inquiries, either the creditor or CRA is coding them incorrectly and I would contact them to dispute them.

I pulled this off of the creditinfocenter.com web site:

"An inquiry buffer is in place and all AUTO and MORTGAGE inquiries within 30 days from Scoring are IGNORED.

AUTO and MORTGAGE inquiries in any 14 day period count as one inquiry, this is called de-duplication in the industry, like you really wanted to know that. "

 

That is what they claim is supposed to happen. But I personally don't think it really gets calculated that way.

 

I agree with you. The CRA'a are not out to help us.

I had a similar problem as well with mortgage inquiries. I disputed them and they were removed.

 

Ok let's say I purchased a car and 3 inquiries occured . With 2 inquries already on record I now have a total of five. So FICO scoring will ignore 2 and only penalize me for 3. Now that's how scoring is done but does it prevent denials based on on excessive inquiries?

For example, someone posted that Generations denied them based on excessive inquiries. This person had 4 inquiries. So Generations won't allow 4 inquiries. So according to my scenario above I shoudn't get denied. But I bet I would because Generations will see 5 inquiries. Maybe my score wouldn't be penalized but a human will see all the inquries and deny.

 

Good thinking killer!

 

If it's aweful-it must be true!

 

Generations approved me with lots more than 4 inquiries. Any lender using the latest generation FICO scoring system will count multiple auto or home loan inquiries against you.

On the subject of rejection letters, I think lenders just use the top score factors listed on your report when in reality it is the score that matters. I had over twenty inquiries on my report when Gen. approved me with a tu score of 751.

 

wolverine,

That's good news for me. I plan to apply later in April and I have more than 4 inquires due to car loan. Sounds like I have hope.

 

wajaba,

I would suggest contacting your broker soon and ask what is going on. When they pull an excessive # of inquiries they are after two things (I know this is going to send like a conspiracy theory):

1. The more inquiries, the lower your score, causing you to downgrade to a higher interest rate or more points to get your loan approved (Killer mentioned this earlier in the thread).

2. An excessive # of inquiries not causing you to receive a higher interest rate or more points (since it is an FHA loan...and not as score driven), but it bascially kills any chance you have of retaining/establishing credit for the next 12 months once you get into the home.

Just my $0.02. I hate that our credit is so score driven and the number of inquiries can affect one's ability to establish credit or retain the credit that they have. The whole FICO system should abolished. If they want to keep account of our credit history, accurately...fine, but today's deterrent of "well, you make a million dollars a year, and maintained good credit for 35 years, but since you don't have a 680 we're going to have to decline you" crap has got to go.

Dani

 

1* When you see things working out like this time after time in post after post what else can you conclude?When you constantly see the facts unfold right here on this board it's not a conspiracy theory-it's reality!

2*No theory here it actually is working like this.

3*True

4*Fico is not a system it's a fraud that needs to be outlawed.

5*Yer Right:Flush the crap down the commode!!

wajaba,).]