Re: FORGET fico score NOT used by Mtg Lenders[ Edited ]
11-09-2012 11:37 PM - last edited on 11-10-2012 06:52 AM by llecs
What I am expressing is that if I obtained a score from myFico or several (or each) of the reporting credit bureaus I would have 3 scores... 775 763... 750. That is what I have done.
When ANY mortgage lender runs a credit inquiry from the exact same sources they will report back numbers like 713... 680... 735.
Its is a matter of the formula. Any lender can establish criteria to give them the results they require for their best interest.
THAT IS WHAT I THINK but I am seeking the truth
The FICO "we" as consumers desire to use as evidence of our credit worthyness and the numbers "we" purchase are worthless if some other party can establish a different formula which provides different results.
We should be able to purchase the same FICO score system used by Wells Fargo, Bank of America / Merryl Lynch
Note... this difference happened to me with 2 internet lenders, wells fargo, merrill lynch and even a little neighborhood bank. Everyone managed to produce the low score almost 50 points below what was available to me as a purchased item.
This low score has always been within the acceptable range for FnMae but each lender tried (some won) to raise the rate by 1/8th to 1/4. Chump change but multiply that by 10,000+.
5 lenders in a row... some big... some med and one small. Each was able to produce a low FICO.
PLEASE EXPLAIN how a FICO score I can purchase has any usefullness when dealing with a lender, car dealers (I had one of those and they backed off), insurance companies or even employers if they can control the results.
Fair Issacs might be useful, I have doubts, but on the assumption it is useful there must be honesty but most important consistency.
Some real smart attorney should start a class action suit. Imagine lenders hiding behind FICO when their true intent violated civil rights and associated laws. We can end red lining neighborhoods... not loaning to Hondurans and the handicapped... prevent gay people from getting loans.. your how old? No way we will make a 30 year loan... see your FICO score! Its only 2... yes we know Expierian, Transunion, Equifax state 800. Sorry we ran it and it is 2 not 800.
Off the subject... but I found one small bank making 2 million dollars NET a month by NOT making loans. They made most of it by charging processing and appraisal fees. As with most banks "they" own the appraisal management company and the UNDERWRITER. Why struggle and make loans when we make 2 million PROFIT a month turning people down said an insider. No federal oversight... no bad loans... no buybacks... just income.
Edited to remove a bad script - llecs, myFICO moderator