Mortgage scores?

Question

I told the mortage broker that my score went up. I told him I have an online service that provide me with FICO scores from all three bureaus. He told me that the mortgage companies use a differently type of report. He said what I have is a "consumer friendly" version. with that being said, wouldn't the score still be the same. I mean, If I see 623 shouldn't he see 623? please explain to me this so-called mortgage rating system.

The middle score is 621 the highest is 623

Answer 1

What you are being told is completely accurate, sadly.

It's the biggest scam on earth right now. They charge consumers $30 or more to get credit scores that aren't actually what they sell the banks for $15.

Your online reports should have disclosed the fact that the scores you are buying are NOT necessarily the same ones a bank might pull.

It's not the broker's fault. It's the bureau's fault.

There's also different versions of the scoring software still out in the marketplace. Some are from 1998. Some were changed in 2004. Others changed a couple times along the way. It's possible your broker's credit reporting agency (not the bureaus, but the company they purchase their reports through) is using an older model.

Sorry though. You are not being lied to by your broker. You were lied to by the bureaus you bought your online scores from, or didn't notice the fine print, assuming there was some. I'm trying to read the fine print on truecredit.com, and they use such a faint color of lettering, it's almost literally invisible. And it's in an incredibly tiny font size. It's just ridiculous, really.

However, here is the very last sentence: The credit scores of TransUnion may not be identical in every respect to any consumer credit scores produced by any other company.

So there you have it.

Answer 2

Sounds like you need to get a second opinion. A FICO score is a FICO score and if you have a score of 623 that is what it is no matter who checks it or how. Mortgage companies generally use the middle score though so if 623 is the highest, don't expect that to be the one that is used.

Answer 3

You're right! I'm a mortgage broker and credit scores all come from the same place you received your's. There could be a slight variance only because another inquirey was made. You have to be very careful with that, as the more your credit report(s) is/are pulled, the lower your score becomes. One of your contributors hit the nail on the head; the higher the rate your broker is able to sell you, the higher he gets paid. The term is "yield spread premium" (conventional loans) or "service release premium" (government loans). One way to be sure of your credit scores on your mortgage broker's copy of your credit is to ask for a copy of it. Be wary: look for the date the credit report was actually pulled then refer back to your source and find his inquiry to make sure the dates match.

Answer 4

He is full of it. Fico scores are the most widley used score by lenders.

I just had my score pulled bya mortgage broker and he took the middle 3 of my scores....

Answer 5

I agree..go to a different lender; this guy simply wants to up your interest rate. (Some mortgage brokers actually get bonuses if they sign you with higher interest rates) A FICO score is just that - there aren't two versions. Either demand to see his report or move on.