Bureau scores vs. mortgage model

DUNNOO =)

 

I have found that my scores, and this is just my experience, are always HIGHER when I have the mortgage company pull them.

Just had them pulled for my re-fi, and they came back:

EQU 753
EXP 722
TU 701

See below what they are when I pull them. There is a pretty good difference there.

 

I've heard conflicting stories, some more, less and the same.

However, I believe they use a specific scoring model for mortgages so it would make a difference on what you were applying for and your score. They also have different models for auto loans. I think that's why they usually pull a tri-merge report for mortgages.

 

Re: Re: Bureau scores vs. mortgage model

It's the same score, but credit reports for different reasons may be filtered for different information. Different information means different score.

 

Re: Re: Re: Bureau scores vs. mortgage model

I'm pretty sure that if the loan is over $150k then the 7 year limit no longer applies - ie, on the report they get they can see lates/chargeoffs/etc that are 10, 15, 20 years old.

Same for some employment credit pulls...

 

Re: Re: Re: Re: Bureau scores vs. mortgage model

For employment over $75,000 per year !

BTW, perhaps mycroft or somebody can answer:

Do they get that sophisticated in mortgage scoring where they will ask for a score based on older than 7 and 10 yr. data in cases where it is exempted from the obsolescence criterion ???

 

Re: Bureau scores vs. mortgage mode

My PG score is 2 points higher than my EQ FICO.

 

Re: Re: Re: Re: Bureau scores vs. mortgage model

Woah, woah WOAH!!!! Wait a second here! What do you mean? I thought, (with the only exceptions being BK, criminal, or personal data), that NOBODY ever saw anything past 7 years in a credit report?!?!?! (Provided you make under 75K) Is that correct??? Mycroft, can you confirm that statement? I mean, what I did at age 19 I really don't think will benefit me when I'm applying for mtg or new employment! Help! I'm stressing!

 

Re: Re: Re: Re: Bureau scores vs. mortgage model

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]
(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.1
(b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with

(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;

(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.

 

I was really disappointed to learn about the paragraph b) exemptions about 3 weeks into my learning experience on this and other boards.

Ever since I filed BK7 6+ years ago, I had always thought I would be completely shed of BK.

That being said and paragraph b) notwithstanding, it's still not clear to me how often or if ever lenders and employers actually do get this otherwise obsolete data .

Thus, my question above for mycroft or anybody else.

:-(

 

Re: Re: Re: Re: Bureau scores vs. mortgage model

In mortgage loans, the credit report is the same regardless of loan amount. When I pulled the credit reports for my own files, there wasn't even a place to tell the reseller details of the loan, just details of the customer.

I suppose it's possible that another mortgage lender does things differently, but keep in mind that our goal is to qualify buyers. We want our loans to be good (low default rate) but if Fannie and Freddie arn't interested in what happened ten years ago, neither are we.

I don't really know about credit reports pulled for employment, that's not the kind of credit report that I'm familiar with. Having said that, I once attended a small business seminar hosted by this guy who strongly advocated pulling credit on new hires. His theory was that a person who was sloppy paying their bills on time would also be sloppy in their work habits, coming in late, having a lot of personal problems that required time off, etc. He said that his experience was that every time he hired someone with bad credit, he had problems with that employee.

Using that guys logic, I'd say that it's only recent credit problems that are a concern. If you've been clean for seven years, who cares what problems you had eight, nine or ten years ago? People grow and mature.

I'm only speculating on employment credit checks, but I think the logic is solid. Every job I've had for the past ten years has required a credit check, and my credit wasn't always clean, yet I was never denied any of these jobs.

 

Re: Re: Re: Re: Bureau scores vs. mortgage model

Thanks for the input, Mycroft.