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New Member
ifa370
Posts: 4
Registered: ‎07-01-2013

Denied refinancing

My husband and I applied for refinancing through Third Federal (now with Wells) due to the promise of a 2.75 percent interest rate on a 10-year-loan.  We both have excellent credit history with scores above 750 in all bureaus.  I sold my home in February (which I kept empty after marrying 4 years ago) after a nine-year-mortgage and unblemished payment history.  We both have long excellent credit and have been in our professional jobs for over 10 years. To my surprise, the bank came back with a denial saying that I had a 694 credit score from Trans Union. We have Life-Lock and they update the Trans Union scores monthly...so I immediately checked and there it was a 750 score from just 2 weeks ago.  I called the bank and they told me that the score came directly from Trans Union. I called Trans Union and they said that they only sent a credit report and that the bank must have used their own calculations to arrive at that score. The bank denies it and keeps sending me back to Trans Union.  The only blemish on my reports is a 50 dollar medical bill from 2 years ago.  It was a co-payment and it was reported in error as I just checked my financial archives and it was paid for on the day of service.  I checked my FICO scores on all 3 bureaus and they range from 760 to 776.  Why is the bank still telling me that they got 694 out of Trans Union? Apparently, they only used Trans Union even though I see that they requested reports from all 3 bureaus.  I know that there are various way of computing a score but it should not account for an 82 point discrepancy.  I am beginning to feel that the bank is doing a bait and switch or is discriminating against us due to our Hispanic surnames.  What are my resources? Am I entitled to see the hard copy of how they obtained the credit score? Thank you in advance for any feedback!

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Denied refinancing

You should be able to ask them what scoring model they used. 

 

It could be a FICO score just different models.  The one here is TU98 and most lenders use TU04 I believe.

New Member
ifa370
Posts: 4
Registered: ‎07-01-2013

Re: Denied refinancing

Thanks for your reply. I did ask them how they determined the score and they keep telling me that the score was given to them by Trans Union...that it was Trans Union score and not their own scoring. Trans Union of course denies it. 

Moderator
pizzadude
Posts: 8,626
Registered: ‎01-28-2010

Re: Denied refinancing

 

If they have denied you credit, then they are required to present you with written reasons, which should include the score they used and the CRA from which they obtained it.  

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
New Member
ifa370
Posts: 4
Registered: ‎07-01-2013

Re: Denied refinancing

Thank you. I am looking at the "Statement for Credit Denial" and the "Risk-Based Pricing Notice-Alternate for Residential Real Property" which were enclosed in letter.  It says "Your Credit Score: 694  Date: 6-25-13  Source: Trans Union. There is nothing else related to the source or equation. Both pages credit only Trans Union as the source.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Denied refinancing

If it does not say FICO then it is probably TUs own score.

 

Is there a score range?

New Member
ifa370
Posts: 4
Registered: ‎07-01-2013

Re: Denied refinancing

Yes. It says "Scores range from a low of 309 to a high of 839."

Moderator
pizzadude
Posts: 8,626
Registered: ‎01-28-2010

Re: Denied refinancing


ifa370 wrote:

Yes. It says "Scores range from a low of 309 to a high of 839."


This score would very likely be the Transunion FICO Risk Score, Classic 04 (formerly called Empirica).

The Transunion score sold here at MyFICO is an older version, FICO 98.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Denied refinancing

It is a FICO score as far as I know:  Trans Union FICO Risk score Classic 04 score range 309 - 839


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