10-23-2013 08:59 PM
I've seen numerous blogs post about getting a free FICO when you appy for a mortgage.
Apparently this happens regardless of adverse action being taken against you, so it doesn't come under FACTA. Just wondering what legislation it does come under (most blog say it's due to legislation put into affect around 10 years ago, so it can't be the FCRA either). What score do mortgage lenders need to provide you with? Just the scoring models they are planning on using on your application?
10-24-2013 06:28 AM
10-24-2013 08:52 PM
I could be wrong, but I think it falls under the FACTA provisions of the FCRA (FACTA is an amendment of the FCRA). Historically, lenders will provide your tri-merge along with all three scores when you apply for a mortgage.
Each lender can pick or choose which FICO scores they want to use in consideration of evaluating credit. They can opt to use the newer versions or older versions. It's up to them. A vast majority of mortgage lenders use:
Beacon 5.0 (same as on myFICO) for EQ
Fair Isaac Risk Model v2 for EX (used to be available on here...you can only get it via PSECU...myFICO offers a version that's 10 yrs newer).
Empirica 04 (also called FICO Classic Risk Model 04....6 yrs newer than the version on here).
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO