Our clients will be Educated, Encouraged, & Empowered to a more Self-Reliant Attitude toward Home Loan Financing.
"Our Clients will be Educated, Encouraged, and Empowered
to a more Self-Reliant Attitude toward Home Loan Financing."
YOUR CREDIT REPORT
consumer credit reports vs. mortgage credit reports
consumer credit reports
In addition to the “Big Three” credit reporting agencies (Equifax, Experian, and Trans-Union) the Fair Credit Reporting Act (FCRA) also classifies dozens of other information technology companies as "nationwide specialty consumer reporting agencies" that produce individual consumer reports used to make credit determinations.
Under Section 603(w) of the FCRA, the term “nationwide specialty consumer reporting agency” means a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis relating to:
A large portion of consumer credit reports contain errors. A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake.
mortgage credit reports
There are major differences between the two types of credit reports; primarily in layout and content. Each credit line on a mortgage credit report or tri-merge shows the name of the creditor, the type of credit, the date it was opened or started, the amount borrowed or used, the date it was closed with the final status, and the current balance.
Then there are three columns alongside each lender or creditor labeled with the numbers 30, 60, and 90. Those columns will show the amount of times you were late for that many days.
The tri-merge mortgage credit reports also include “public records” data from the local and federal court systems. Those accounts include bankruptcies, judgments, and tax liens. Those proceedings are usually the most inaccurate on CRA s (Consumer Reporting Agencies) since the courts do not report to them with current data.
The judgments and tax liens that are on the report and can be successfully disputed and usually must be paid before a mortgage will be granted.
Consumers have the right to receive a “free” credit report annually. Typically, that report will not contain the credit scores. You may request a credit score from a consumer reporting agency that creates and distributes scores however you will have to pay for them.
Be advised that there will more than likely be a disparity between your “consumer credit” scores and your “mortgage lenders” credit scores. Mortgage lenders use a more complex evaluation process to determine scores for home loan applicants.
Mortgage Assistance Program
Office: 281.674.5897 Fax: 713.634.2838
rlavong@ev1.net
