topic Re: Authorized user (mortgage guys) in Mortgage Loans

Authorized user (mortgage guys)

Anonymous — Tue, 30 Jun 2009 20:48:48 GMT

I believe I saw this post before on another thread. How are AU accounts looked upon during UW. Do they even count (make a difference)?

Re: Authorized user (mortgage guys)

ShanetheMortgageMan — Tue, 30 Jun 2009 20:58:46 GMT

If they are coded properly (which most AU accounts are) then the payments on them will be excluded from the debt ratio, and underwriters are often excluding the trade line from your qualifying trade lines (in case you need to be manually underwritten) but I believe they are still being considered with automated approval engine's.

Re: Authorized user (mortgage guys)

Anonymous — Tue, 30 Jun 2009 21:05:45 GMT

Would they do a rescore and remove them? My adress is the same as the responsible party and I make the payments.

Re: Authorized user (mortgage guys)

Anonymous — Tue, 30 Jun 2009 21:14:12 GMT

rik, a question for you as I am an AU on a CC also and had this question. But if I can ask, are you asking this question because of the payment history and/or balances due for your DTI ratio's? Or did you become an AU to bump your credit score?

I thought I'd see a score bump with the new trade line and the excellent payment history on the card. I haven't seen any increase. Maybe the new scoring models now exclude AU accounts? Would you know this?

A.K.A.- piggy backing credit...

I was just curious as it did nothing for my FICO scores...

Re: Authorized user (mortgage guys)

DallasLoanGuy — Tue, 30 Jun 2009 21:18:32 GMT

@Anonymous wrote:
Would they do a rescore and remove them? My adress is the same as the responsible party and I make the payments.

no

Re: Authorized user (mortgage guys)

DallasLoanGuy — Tue, 30 Jun 2009 21:21:00 GMT

There is a big difference in being on a spouse's card because you share the card and share paying the bills... as this is very common.

Getting added to mom & dad's cards to manipulate the FICO is another matter.

Underwriters are bginning to sniff out the difference

Re: Authorized user (mortgage guys)

Anonymous — Tue, 30 Jun 2009 21:35:27 GMT

I was added to these cards because I currently live with my mother and I help pay her bills. There are times when she needs things and will use her card to get them. I don't want her paying the minimum for the next ten years so I usually pay off her balances (depending on the amount) within one or two months. Her cards are older than mine by about 3 years. I keep her utilization down below 15% for the most part. When I started making the purchases for her, (she doesnt leave the house much) we decided to add me as an AU to facilitate inquiries to her account or when something had to be returned to the store. We used to have a hard time getting these sort of things taken care off before I was added. She is an older person and doesnt like to talk with people she doesnt know, such as a credit card company reps. I do these things for her. I do feel that the accounts are helping me, but also know I'm not doing it to piggy back.

Re: Authorized user (mortgage guys)

Anonymous — Tue, 30 Jun 2009 22:19:25 GMT

Also, I don't know how much if anything these 2 CC are helping. The same month these were added I saw a score increase of 21 pts. I also brought my utilization down from 85% to 70% that same month. I'm wondering if they may be hurting my score.....

Re: Authorized user (mortgage guys)

Anonymous — Thu, 02 Jul 2009 23:21:33 GMT

@Anonymous wrote:

I thought I'd see a score bump with the new trade line and the excellent payment history on the card. I haven't seen any increase. Maybe the new scoring models now exclude AU accounts? Would you know this?

A.K.A.- piggy backing credit...

I was just curious as it did nothing for my FICO scores...

If the line is positive, has low utilization, and is older than your accounts, it should be helping your score. The FICO 08 model is supposed to have a way to determine which accounts are piggy back and then discount that. Hardly anyone uses 08 though. We still see 98 here and many lenders are using 04.

Re: Authorized user (mortgage guys)

Anonymous — Fri, 03 Jul 2009 06:53:49 GMT

Thx rmily-

I am a AU on a family business card... there was no malintent plan to "bump" my score... I just found out about AU accounts when applying for a mortgage recently...

I was authorized about a year ago, when I wasn't smart enough to care abut FICO scores. I'm sure it "bumped" up then. This mortgage process is an eye-opener....