Lender Score Review

Anonymous · ‎07-23-2007

I recently had my scores pulled for a home loan thinking they were high enough. Well apparently they weren't. I found out that they always pull the middle score which was unfortunately much lower than my high score. When I asked the lender for a copy of the CR it was a third party company who pulls the info and it appears they use FAKOs. I did see where it shows BEACON 5.0 and FICO 98 for EX/TU.

Is the use of FAKOs for home loans normal?

Are the types of calc methods shown above the FAKO or FICO?

Thanks,

Anonymous · ‎07-23-2007

@Anonymous wrote:
I recently had my scores pulled for a home loan thinking they were high enough. Well apparently they weren't. I found out that they always pull the middle score which was unfortunately much lower than my high score. When I asked the lender for a copy of the CR it was a third party company who pulls the info and it appears they use FAKOs. I did see where it shows BEACON 5.0 and FICO 98 for EX/TU.
Is the use of FAKOs for home loans normal?
Are the types of calc methods shown above the FAKO or FICO?
Thanks,

Beacon 5.0 is a classic FICO score, but for Equifax (not Experian). FICO 98 is a classic FICO score for TU (I believe there is another TU classic FICO model named FICO 2004 also). The official name for the Experian FICO score contains the words "Fair Isaac". It sounds like the scores pulled by that mortgage lender were indeed FICO scores. The classic FICO score model for each CRA is slightly different, and "Beacon", "FICO 98", etc. are names for specific FICO models and versions. I think the Equifax and Experian FICO scores pulled by your mortgage lender would match scores pulled from MyFico (as of that same date). The TU score might differ slightly depending on what TU scoring model MyFico uses.

(Tuscani - if I've got any of these details wrong, please jump in ...)

Message Edited by Revike on 07-23-2007 05:42 PM

Anonymous · ‎07-23-2007

After I got home I looked at the paperwork again and you are partially right but it does show Beacon 5.0 for Equifax, FICO II for Experian and FICO Classic 98 for TU. With this in mind would all of these be true FICO scores or FAKO? I was told they pulled the scores directly from the CB and did not process themselves.

This was done through CREDCO not sure if anyone is familiar with them. I want to know what they are pulling so I know if I need to worry about the FAKO scores OR true FICO.

Thanks,

Anonymous · ‎07-23-2007

@Anonymous wrote:
After I got home I looked at the paperwork again and you are partially right but it does show Beacon 5.0 for Equifax, FICO II for Experian and FICO Classic 98 for TU. With this in mind would all of these be true FICO scores or FAKO? I was told they pulled the scores directly from the CB and did not process themselves.

This was done through CREDCO not sure if anyone is familiar with them. I want to know what they are pulling so I know if I need to worry about the FAKO scores OR true FICO.

Thanks,

I've usually seen the Experian FICO score called "Fair Isaac Risk Model", but I'm sure "FICO II" would be a genuine FICO score as well. So all 3 are FICO scores.

Credco furnishes reports to many lenders and is a well-known reseller.

Message Edited by Revike on 07-23-2007 07:26 PM

Anonymous · ‎07-23-2007

Would Credco be calculating the FICO score, the CB, or would Fair Issac be calculating the score? I am confused on why Credco would be using a different scoring method for each CB instead of using the same one if they calculate the scores themselves. Also why on the report when it's merged together does it only show history from one CB and not the history for all? It seems misleading when trying to find issues.

Anonymous · ‎07-23-2007

@Anonymous wrote:
Would Credco be calculating the FICO score, the CB, or would Fair Issac be calculating the score? I am confused on why Credco would be using a different scoring method for each CB instead of using the same one if they calculate the scores themselves. Also why on the report when it's merged together does it only show history from one CB and not the history for all? It seems misleading when trying to find issues.

I don't know if Credco processes the scores or if each CRA processes the score before forwarding the information to Credco (I would guess the former). Credco's value is probably in the formatting and also saving the lenders from needing to contact each CRA individually. I don't know if Fair Isaac is involved in the score processing for the Credco report or if they just license the FICO scoring models. Separate FICO scoring models are used for each CRA because FICO has tweaked the formula for each CRA, due to differences in the way each CRA organizes their data. Theoretically, if you applied the Equifax formula to a bunch of Experian CRs, the resulting scores wouldn't give as accurate a risk prediction as if you applied the EX formula.

Message Edited by Revike on 07-23-2007 11:01 PM

Anonymous · ‎07-23-2007

r92503lind-

If you don't mind could you let us know the scores? i'm looking to try for a mortgage in the next year or 2 and really need to have it nailed before I pull the trigger. No fear of being shy around here, this community is very supportive & we've all been there/done that.

Thanks

@Anonymous wrote:
I recently had my scores pulled for a home loan thinking they were high enough. Well apparently they weren't. I found out that they always pull the middle score which was unfortunately much lower than my high score. When I asked the lender for a copy of the CR it was a third party company who pulls the info and it appears they use FAKOs. I did see where it shows BEACON 5.0 and FICO 98 for EX/TU.
Is the use of FAKOs for home loans normal?
Are the types of calc methods shown above the FAKO or FICO?
Thanks,

Message Edited by Anderson on 07-23-2007 09:42 PM

Message Edited by Anderson on 07-23-2007 09:43 PM

Anonymous · ‎07-23-2007

If the CRA provide the score using the FICO calc mentioned for each wouldn't it be a FAKO? I know Fair Issac creates a unique FICO formula for each CRA and just name it something else. I am just curious if the formula names are FAKOs or FICO to know what I should be looking at.... Thanks,

Anonymous · ‎07-23-2007

@Anonymous wrote:
Revike-
If you don't mind could you let us know the scores? i'm looking to try for a mortgage in the next year or 2 and really need to have it nailed before I pull the trigger.

Not quite sure exactly what you're asking ... The scores most lenders pull are the same as (or very close to) the FICO scores you can purchase from MyFico. Most people report their lender uses their middle score when determining types of loans available and interest rate.

Anonymous · ‎07-23-2007

I was just trying to figure out if the Credco scoring is the FAKO or FICO. I get the true credit service and such and want to know if those would be my guide or only myfico.com.