I thought I would share this little info. for prospective homebuyers. I applied for an FHA mortgage through a local bank on Aug 21. I called today and was told that one account would be a problem because it shows a deliquency as of 8/01. I have had no lates in over a year and a half, so this is a CRA screwup. I recently disputed the account, so they have the date of last activity confused with the date of the disputes somehow. The date of last activity was 9/99. Now the bank has to get a letter from the creditor to verify this. A faxed copy of my Equifax report was not good enough. BAH!! I was told that the underwriter likes to see no more than two 30 day lates in the last year, so after this mistake is cleared up, I should be in the clear (hopefully). Just more proof of how messed up the CRAs can get things. In this case, I guess the company that provided the tri-merged report is to blame.
Which national credit reporting agency reported the inaccurate information? http://www.ftc.gov/opa/1998/9810/credco.htm
Mike, do keep us informed on your progress on this! Don't worry, you'll clear it up and I'm sure the loan will progress! Best of luck!
George, you know your stuff. Thanks for that info. My bank used a merged report prepared by Credco! The account in question is only listed on Equifax and was deleted from TU earlier. From closer inspection of the record, there is more than one mistake. The Equifax record shows a last activity date of 9/99 although I paid the account off on 2/01..odd. I would rather keep that 9/99 date, but it is still a mistake that shouldn't happen. The date reported shows 8/01 because I disputed the account. Credco obviously is reporting the dispute date since I am pretty sure I can't be currently deliquent on an account that I paid off in 2/01, LOL. I don't get it. Are lenders & mortgage underwriters not intelligent enough to pull each CRA report? I guess I should have put all three reports on their desk and walked if they refuse them. I have to pay $80 for a merged report that is incorrect. LOL. The lender is sending a letter to the creditor to get the correct information. The FTC should have shut the doors on Credco. Thanks again for that info, George. I may print a copy and give it to the bank.
I'm working with Credco (who are they) on some inquiries from 2000....may I just say they are the idiots that told me I had to provide documentation that I DIDN'T apply for credit. Hallloooo...anybody home in there, Credco? Duh.....they are not the sharpest crayon in the box, Mike, hang in there. LOL (I teach school...have to use school analogies)
Mike, after you get your loan, I'd like you to ask the lender and credit reporting agency-- in writing, and request that they respond by the same method-- why you had to let them manhandle your file putting additional inquiries on your file to rescore it. I'd also like you to ask them if the score was based on the way your file existed when the first score was created, or when the second score was created.
Thx Greg, I meant Greg before, not George. Sorry. I don't know where that came from..lol. I don't understand how a third party company can "manipulate" your records in the first place. I feel having three major CRAs that incorrectly report information is more than plenty. We don't need these other companies inserting their own errors into the mix.
