No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Starting in September, the Consumer Data Industry Association is creating a new field and code that will allow the lender to report whether a person has a fixed or adjustable rate interest rate. Presumably this will apply primarily to mortgages, but the CDIA guidelines say that "this field can be used by any type of reporter in any industry."
I don't expect the reporting of an adjustable rate mortgage to have a direct effect on FICO scores, but this may have a negative effect on a person's ability to obtain new credit if the creditor considers the variable rate mortgage to be a sign of a riskier borrower profile.
Mank, I found this when I was reviewing the latest CDIA guidelines. Here's a link to the relevant information.
Mank,
The TU information appears to be from the property tax based information. In my area our assessor just reduced property taxes by a large amount. That puts my LTV at 154%.
The tax basis and the real saleable value have always been much different.
I can challege the assessor, but pay higher taxes-uh no. I think TU is out of line here.
Ddancal98 wrote:
Mank,
The TU information appears to be from the property tax based information. In my area our assessor just reduced property taxes by a large amount. That puts my LTV at 154%.
The tax basis and the real saleable value have always been much different.
I can challege the assessor, but pay higher taxes-uh no. I think TU is out of line here.
Yes, that's what Mank and I already concluded.
It's already disturbing that TU had added this information to their reports. The presence of this information doesn't affect FICO scores, but it still affects the ability to obtain new credit, as both of you have discovered.
Now insult is being added to injury, in that the CDIA has issued new guidelines that would identify loans as ARMs on ALL credit reports. So even though Equifax and Experian are not including public records on their reports, your ARMs are still going to be labeled as such on your credit reports.
Again, this shouldn't affect your credit score at all - ARM vs fixed rate mortgage is not part of the scoring model - but it is possible that prospective creditors will see the ARM designation, decide that this represents a higher risk profile, and deny credit based on the ARM.
Not good at all.
Actually no, the CLTV being reported doesn't match my loan to assessed either in 2009 or the new assessed I've just received in the mail for 2010. My guess would be that they are reporting First American's trademarked "TrueLTV" value since Transunion has partnered with them. If this is the case, this is my biggest point of contention. This 3rd party vendor shouldn't be allowed to assess the value of my property from their headquarters in California.
I just called Transunion to ask them where they were getting this value from, and they told me it was being reported by the creditor. I told them that was utterly impossible, since the entry on my report is being pulled from a publicly recorded document, and that this deed of trust was recorded once in 2008, has of course never been changed while the CLTV Transunion is reporting has, and that the LTV when I took out the loan in 2008 was 80% and even that number isn't stated anywhere on my deed of trust. She responded by apologizing and telling me she would delete the ARM detail entry in it's entirety. Small victory? She's mailing me a copy of changes made, should be here in 5-10 days, so I'll let everyone know if it actually happens.
I'll keep my eye on it, but I'm pretty confident that if it deletes it will stay deleted. The mortgage is being reported correctly each month in my accounts section. All this ARM stuff was additionally being reported under the public records section, and it is usually 3rd parties that collect this information and sell it to the CRA's. Hopefully whoever is data mining in my area has already moved past the dates my DOT was recorded.
Now if I can just get FIA to reconsider my application without this ARM info included, I'd be a happy camper!