Score Dropped: There is insufficient relevant real estate account information.

[Anonymous]

My mortgage servicer for Fannie Mae loan was transferred from PHH to NewRez when I was shopping around the credit unions to do a 20 year refinance of the balance. 

My FICO came back at 850 and VantageScore was 820 (soft inquiry) when the credit union quoted me a rate.  The rate I was quoted was 2.675% with -0.5 points -- yes minus points.  My closing costs quote with negative point reduction was $3100.  When I applied and gave them permission to pull my credit, I got a message that the rate offered was not available for me and I was quoted 3.875% with 1.25 points and closing costs $3500+ for 15 year loan or 10.1% 30 year ARM with $5000+ closing costs and fees. 

I ran my scores and the only change was a negative entry for "There is insufficient relevant real estate account information."  My FICO score went down 20 points and my VantageScore went down 18 points when they transferred my loan to a new mortgage servicer.  When I reviewed my full report, I noticed that PHH showed the account as closed and paid with a balance of $0 end of September on one report.  The other reports showed balance of $0 with a status 'Transferred'.   I made my October payment but NewRez is not reporting the payment or my loan as the servicer for Fannie Mae.  I told customer service I was trying to do a refinance and they said it could take a month or more to show up on my credit reports.  Not only that, but they assigned me a new loan number which makes it look like a new loan.  My mortgage was sold to Fannie Mae in 2010 and in 10 years I retained the same loan number even when the mortgage servicer was transferred before.

The credit union obviously did not like my score dropping between the time I recieved quote and applied.  I am still in top percent category so that should not make a difference.  When I talked to them on the phone, they stated that I was applying for a refinance and my credit report does not show any information for a current mortgage.  Mortgage department said underwriter would not approve a refinance loan when my credit report does not show a current mortgage on my house.

Two questions: 

Why would a transfer of mortgage services drop my score that much?

How do I refinance my loan when my credit report shows a $0 balance?  (Rates will not stay this low while I wait for the credit reports to show my current loan)

[Anonymous]

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@Anonymous wrote:

My mortgage servicer for Fannie Mae loan was transferred from PHH to NewRez when I was shopping around the credit unions to do a 20 year refinance of the balance. 

My FICO came back at 850 and VantageScore was 820 (soft inquiry) when the credit union quoted me a rate.  The rate I was quoted was 2.675% with -0.5 points -- yes minus points.  My closing costs quote with negative point reduction was $3100.  When I applied and gave them permission to pull my credit, I got a message that the rate offered was not available for me and I was quoted 3.875% with 1.25 points and closing costs $3500+ for 15 year loan or 10.1% 30 year ARM with $5000+ closing costs and fees. 

I ran my scores and the only change was a negative entry for "There is insufficient relevant real estate account information."  My FICO score went down 20 points and my VantageScore went down 18 points when they transferred my loan to a new mortgage servicer.  When I reviewed my full report, I noticed that PHH showed the account as closed and paid with a balance of $0 end of September on one report.  The other reports showed balance of $0 with a status 'Transferred'.   I made my October payment but NewRez is not reporting the payment or my loan as the servicer for Fannie Mae.  I told customer service I was trying to do a refinance and they said it could take a month or more to show up on my credit reports.  Not only that, but they assigned me a new loan number which makes it look like a new loan.  My mortgage was sold to Fannie Mae in 2010 and in 10 years I retained the same loan number even when the mortgage servicer was transferred before.

The credit union obviously did not like my score dropping between the time I recieved quote and applied.  I am still in top percent category so that should not make a difference.  When I talked to them on the phone, they stated that I was applying for a refinance and my credit report does not show any information for a current mortgage.  Mortgage department said underwriter would not approve a refinance loan when my credit report does not show a current mortgage on my house.

Two questions: 

Why would a transfer of mortgage services drop my score that much?

How do I refinance my loan when my credit report shows a $0 balance?  (Rates will not stay this low while I wait for the credit reports to show my current loan)

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@Anonymous wow that's a crazy situation your score went down because you don't have an open mortgage anymore. You may be able to contact the servicer and have them fax or email you the information and be able to get a rapid rescore. I'm not certain of how that exactly works maybe someone with experience can chime in?

otherwise you've got a wait till it reports. Even though you have a new account number, it should still have the original date of opening which should return your score.

[Anonymous]

Credit union called me back today and said to email a copy of my October mortgage statement from NewRez and some other information and that they would honor the rate I was quoted.  He told me my score dropped because my credit reports are showing 0 mortgages and as soon as NewRez starts reporting, my score will go back up.  I guess the banks don't want you to pay off your mortgage -- thats how they make their money and the credit reporting agencies make their money off the banks and loan companies.

[Anonymous]

I’m glad it worked out for you. yes the reason for the drop was no mortgage and the score will return if the mortgage returns with the same pertinent information.