topic Re: why do mortgage lenders use only middle score in Mortgage Loans

why do mortgage lenders use only middle score

Anonymous — Sat, 10 Oct 2009 18:16:53 GMT

why do mortgage lenders use only middle score. to give a person a loan. thanks the equifax score i believe

Re: why do mortgage lenders use only middle score

MattH — Sun, 11 Oct 2009 03:53:37 GMT

@Anonymous wrote:
why do mortgage lenders use only middle score. to give a person a loan. thanks the equifax score i believe

Taking the median is a very common statistical practice used in many contexts. In technical terms the median is a "robust estimator of central tendency" while the mean is not robust. In plain English, if for some reason one of your three scores is a lot higher or lower than the other two that most likely means there is something wrong or unusual, so by tossing the highest and lowest they reduce such errors.

Re: why do mortgage lenders use only middle score

DallasLoanGuy — Mon, 12 Oct 2009 13:29:53 GMT

it's the best way to judge your willingness to pay.

since some lenders and collectotrs only report to one report... this can be to your advantage.

Re: why do mortgage lenders use only middle score

BungalowMo — Mon, 12 Oct 2009 18:22:25 GMT

It also makes it easier...I assume that my EX score is lowest, since you can't buy it, and the lower of the other 2 is my median score. If it turns out to be higher than one or both of the others...that's a good surprise.