topic Re: Help Please in General Credit Topics

Help Please

Anonymous — Fri, 07 Feb 2020 18:36:13 GMT

Hi, the first is a question I need some help with and the second is a rant.

#1... Help Please!!! Is Fannie Mae Mortgage BAD for your credit and/or will banks look at that negatively when reviewing you for mortgage, car loan, etc???

Backstory:
I recently did a cash our refi with Citizens Bank. Broker told me on day one of signing app that Citizens Bank will never sell my mortgage. In less than 45 days after closing I get a letter that my mortgage was sold to Fannie Mae. Ok, I understand - not much I can do about it. Today I got an email notification that Equifax added a remark to my Citizens Mortgage account and I should check it to make sure it's accurate, if not contact creditor or file a dispute. Remark says: Fannie Mae Account. Ok, this leaves me with a bad feeling... is it bad? I'd imagine the other two agencies will be adding remark soon.

#2... I've been meaning come on here to rant about FICO Scores. I've been working on improving my score for a while now. Read up on the forum a few times, learned a lot and still more to learn. Some changes to my score seem normal/acceptable, some are down right ridiculous!!! I refinanced nearly 2 years ago, all went well with process and what I thought seemed normal changes to my score appeared (nothing extremely drastic). I recently refinanced with Citizens Bank (cash out refi to pay some debt and lower rate). Anyways, I expected my score to drop a tad during the inquiry process... then it significantly dropped, continued to drop and drop and is now finally (very slowly) coming up. My issue... major drop when new Citizens mortgage appeared -20 some points, major drop when my Chase mortgage showed as paid off -20 some points, and so on. Very, very frustrating!!! Just a rant... sorry.

Trans & Exp wend down 60-70 points from Citizens Bank process. Equifax was not significantly changed.

I do have to say.... after the applying/qualifying process, closing and after close (Citizens Bank commmunication i.e., letters, their poor online layout/availability of info online, etc) I would definitely NOT recommend Citizens Bank Mortgage to anyone.

Re: Help Please

dragontears — Fri, 07 Feb 2020 18:56:09 GMT

I am not going to comment on the "rant" part of your post just the Fannie Mae part.

No it is not a negative remark and it did not effect your score. All it does is indicate that your mortgage is a conventional conforming mortgage.

The same goes if you had a Freddie Mac mortgage.

I have had both

Re: Help Please

Anonymous — Fri, 07 Feb 2020 19:07:07 GMT

Great. Thank you dragontears!!! I appreciate your help

Re: Help Please

Anonymous — Sat, 08 Feb 2020 10:13:56 GMT

I will address the rant. What was your B/L on the Chase mortgage you paid off? Was it your only installment loan?

Which showed up first on the report? The new citizens or the Chase being closed?

Re: Help Please

Anonymous — Sat, 08 Feb 2020 13:40:23 GMT

Hi Birdman,

Original mortgage was just over 260k.

I refinanced with Chase 6/2018 - 204k.

I refinanced with Citizens 12/2019 - 245k 15 Yr (balance on Chase was at 192k).

The cash out was to pay off HELOC 30k and some other debt (one being a personal loan Balance 9k).

The HELOC payoff appeared first on my report, the new Citizens mortgage appeared second, then the Chase payoff. The payoff of personal loan has not appeared yet since Best Egg does not close out loan until x number of business days after payoff which in my case was just after they reported to bureaus for that month. The payoff should show in the next week or two.

My credit utilization was on the very high side Dec & Jan. Jan & Feb I've been paying down cards. I'm at approx 60% now which I know is still high. I plan to pay down further with tax refund soon. I do have a few late mortgage payments from 4-5 years ago that I unsuccessfully tried to have removed. I will have to wait 2-3 years for those to finally fall off.
No car loan.

Total of 4 cards:

Capital One $3500;

Capital One Rewards $500;

Merrick Bank $1600

Care Credit $12k

(I did recently close out the mediocre Indigo in Jan as I did not want to pay $89 annual fee for $300 credit limit).

Thank you!!!

Re: Help Please

Anonymous — Sat, 08 Feb 2020 13:39:41 GMT

Re: Help Please

Anonymous — Sat, 08 Feb 2020 17:59:28 GMT

I’m on mobile and running around but I’ve got a crunch those numbers so I will respond to this later if somebody doesn’t before then. Didn’t want you to think I was ignoring you.

Re: Help Please

Anonymous — Mon, 10 Feb 2020 01:23:10 GMT

Thanks Birdman... I can wait for reply!!!

Re: Help Please

Anonymous — Mon, 10 Feb 2020 01:48:48 GMT

OK I’m stationary give me a little while and I’m gonna try to look at it and see if I can figure out anything.

Re: Help Please

Anonymous — Mon, 10 Feb 2020 02:57:30 GMT

OK let me see if I’ve got this correct.

The original loan was for 260K and it was paid off at 204K?

Chase was for 204K and paid off at 192K?

Citizen was 245K?

Citizens reported before the chase was reported as paid and closed?

Now what about this new egg? You said you owe 9K, but what was the original amount. (Everything goes by aggregate utilization when it comes to installment loans.)

Because of those lates, you are on a dirty scorecard. I would be willing to bet your revolving utilization increasing for December and January contributed to the score drop. Additionally any inquiries that you took for the loans take 30 days to ding your score.

What was going on with your revolving utilization when Chase initially reported the mortgage?

I’m assuming the numbers next to the cards are your CL’s not your balances. But I’m taking your word your revolving utilization is about 60% correct?

Be aware that every time a new mortgage reports, it drops your average age of accounts if a threshold is crossed, which accounts for some of the score loss.

When you’re talking about these point losses please identify the bureau and algorithm specifically you’re talking about too, please.

I really need to know your revolving aggregate and individual utilization changes at the time, as well. You’ve got a whole lotta moving parts going on it was such a busy file it makes it difficult to pinpoint reasons unless we know exactly what changed between two points in time.

Until I know about the personal loan it also makes it difficult. Your original loan was at 78% B/L when you did a refi. So it makes sense that you had earned some points, so the refi took your aggregate installment utilization from 78% to 100%, assuming you had no other installments at that time.

That would cause a point loss, but it doesn’t seem it would be that high, that’s why I question what your revolving utilization was at that time. If you crossed an AAOA threshold that would’ve added to the point loss, however.

The Chase mortgage was only paid down to 94%. But without being able to take into consideration the New Egg, it is difficult.

Re: Help Please

Anonymous — Mon, 10 Feb 2020 19:18:32 GMT

Wow Birdman... you are extremely knowledgeable!!! Let me get all of your answers - I'll post reply soon. It's a very busy work day so I'll have to start this evening. Thank you!

Re: Help Please

Anonymous — Tue, 11 Feb 2020 07:50:33 GMT

Take your time, I'm in and out, but as I said, its gonna be hard to answer with precision unless you really track everything daily and know all your changes.

But we can maybe make some reasonable guesses.