topic Re: Affect of rolling thirty lates on score in Understanding FICO® Scoring

Scoring impact of "rolling thirtys"

Anonymous — Mon, 12 Apr 2021 14:16:15 GMT

Good morning. I'm hoping that someone can provide definitive insight into the impact of "rolling" thirty day mortgage lates. In particular, when does the scoring impact lessen once an account is brought current (i.e., xxx months from the initial late, or xxx months from the most recent late).

For a real world example, assume that the debtor has a string of 8 thirty day lates, but the creditor erroneously reports that the account was brought current in month 5, so the history looks like (30,30,30,30,OK,30, 30, 30, ok, ok, ok . . .).

Is that erroneous history preferable, strictly from a score perspective, to one that looks like (30, 30, 30, 30, 30, 30, 30, 30, ok, ok, ok. . . .)?

Thanks for any help you can provide.

Affect of rolling thirty lates on score

Anonymous — Mon, 12 Apr 2021 14:56:47 GMT

Tried posting a similar message earlier, but it seems to have disappered.

Can anyone provide some definitive information about the impact of uninterrupted rolling thirty lates versus a string of thirty lates that is brought current in the interim?

That is, is it preferable, from a scoring perspective, to have, for example, a string of 8 30 day lates versus a string of 5 30day lates, a current, and another sting of 3 thirty day lates? Which scenario will recover more quickly assuming that they both are eventually brought (and stay) current in the same month?

Thanks

Re: Affect of rolling thirty lates on score

Brian_Earl_Spilner — Mon, 12 Apr 2021 16:07:47 GMT

If you're planning to keep the card for 7 more years, it doesn't matter. If the card will go into default and closure, bringing the account current will reset the DoFD making it stay on your reports longer.

Re: Affect of rolling thirty lates on score

SouthJamaica — Mon, 12 Apr 2021 16:11:24 GMT

@Anonymous wrote:
Tried posting a similar message earlier, but it seems to have disappered.

Can anyone provide some definitive information about the impact of uninterrupted rolling thirty lates versus a string of thirty lates that is brought current in the interim?

That is, is it preferable, from a scoring perspective, to have, for example, a string of 8 30 day lates versus a string of 5 30day lates, a current, and another sting of 3 thirty day lates? Which scenario will recover more quickly assuming that they both are eventually brought (and stay) current in the same month?

Thanks

The fact that a late payment is brought current is meaningless, except that it means you don't have yet another late payment.

A late payment stays in your record until it falls off.

I'm sure there's no difference in scoring perspective between the 5-and-3 versus 8 straight scenario that you posit.

As to which will recover quickest, the answer is the one that is oldest; the more recent you have lates the longer it will take to recover.

Re: Affect of rolling thirty lates on score

Anonymous — Mon, 12 Apr 2021 16:14:13 GMT

Thanks. I'm think specifically about mortgage lates.

Inparticular, i understand that the affect of lates moderates after 6mth, 12mth and 24 mth. Are those timelines affected by an interim "current" such that it restarts the "timing" of score impact.

Re: Affect of rolling thirty lates on score

FlaDude — Mon, 12 Apr 2021 20:43:36 GMT

@Anonymous wrote:
Thanks. I'm think specifically about mortgage lates.

In particular, i understand that the affect of lates moderates after 6mth, 12mth and 24 mth. Are those timelines affected by an interim "current" such that it restarts the "timing" of score impact.
.

I agree with @SouthJamaica that whether your string of lates is uninterrupted or punctuated by the occasional current won't really make a difference. Lates do lose some effect over time, so in either case the impact of the most recent late payment will be the same, and for the most part the number of latest over intervals like 1 year, etc. will be the same.

Re: Affect of rolling thirty lates on score

Anonymous — Mon, 12 Apr 2021 21:26:41 GMT

Thanks all. I wasn't sure, given that I had heard that underwriters and Fannie/Freddie used to use the start date of rolling thirties to determine eligibility (ie, uninterrupted lates were punished less than a "new" string of lates). I wasn't sure if that logic translated to scoring algorithms as well.

Re: Affect of rolling thirty lates on score

UncleB — Tue, 13 Apr 2021 02:32:24 GMT

@Anonymous wrote:
Tried posting a similar message earlier, but it seems to have disappered.

Hi @Anonymous, your first thread was marked as spam by the system. I've restored it, and merged it with your new thread.

I don't think you'll have any more problems, but if you do just drop any moderator a PM and we'll be glad to help.

--UncleB

myFICO Moderator

Re: Affect of rolling thirty lates on score

Anonymous — Wed, 14 Apr 2021 03:10:02 GMT

@Anonymous wrote:
Thanks. I'm think specifically about mortgage lates.

Inparticular, i understand that the affect of lates moderates after 6mth, 12mth and 24 mth. Are those timelines affected by an interim "current" such that it restarts the "timing" of score impact.

@Anonymous yes it goes from the most recent, so if it's interrupted that can make the most recent a month later and therefore everything else delayed by a month.

@Anonymous The multiple penalty in F8 arises from lates across more than one account, I believe.

basically when it comes to F8 lates, you got:

1. what was the most severe level of delinquency ever;

2. what was the most recent late (step increases at 6, 12 & 18 months go from this date);

3. are there lates on more than one account?;

4. Is there any amount due on any delinquent accounts currently?; And,

5. Number of accounts currently paid as agreed.

That's Payment History category.

Edited.

Re: Affect of rolling thirty lates on score

Anonymous — Wed, 21 Apr 2021 13:14:35 GMT

Thanks!

@Anonymous wrote:
@Anonymous wrote:
Thanks. I'm think specifically about mortgage lates.

Inparticular, i understand that the affect of lates moderates after 6mth, 12mth and 24 mth. Are those timelines affected by an interim "current" such that it restarts the "timing" of score impact.
@Anonymous yes it goes from the most recent, so if it's interrupted that can make the most recent a month later and therefore everything else delayed by a month.

@Anonymous The multiple penalty in F8 arises from lates across more than one account, I believe.

basically when it comes to F8 lates, you got:

1. what was the most severe level of delinquency ever;

2. what was the most recent late (step increases at 6, 12 & 18 months go from this date);

3. are there lates on more than one account?;

4. Is there any amount due on any delinquent accounts currently?; And,

5. Number of accounts currently paid as agreed.

That's Payment History category.

Edited.

Re: Affect of rolling thirty lates on score

Anonymous — Thu, 22 Apr 2021 17:06:12 GMT

@Anonymous wrote:
Thanks!
@Anonymous wrote:
@Anonymous wrote:
Thanks. I'm think specifically about mortgage lates.

Inparticular, i understand that the affect of lates moderates after 6mth, 12mth and 24 mth. Are those timelines affected by an interim "current" such that it restarts the "timing" of score impact.
@Anonymous yes it goes from the most recent, so if it's interrupted that can make the most recent a month later and therefore everything else delayed by a month.

@Anonymous The multiple penalty in F8 arises from lates across more than one account, I believe.

basically when it comes to F8 lates, you got:

1. what was the most severe level of delinquency ever;

2. what was the most recent late (step increases at 6, 12 & 18 months go from this date);

3. are there lates on more than one account?;

4. Is there any amount due on any delinquent accounts currently?; And,

5. Number of accounts currently paid as agreed.

That's Payment History category.

Edited.

@Anonymous I realized you were focused on the mortgage scores, so I took a look at the Reason Codes and analyzed them for the mortgage Scores as well and it appears to be the same. The penalty for multiple lates is across accounts, not across the same account.

The difference is, as derogatories age, they appear to go from recent to an aged dirty card on F8, whereas on the mortgage scores, it appears some delinquencies move back to clean cards at two years with penalty.