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why do mortgage lenders use only middle score

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Anonymous
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why do mortgage lenders use only middle score

why do mortgage lenders use only middle score. to give a person a loan. thanks the equifax score i believe
Message 1 of 4
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MattH
Senior Contributor

Re: why do mortgage lenders use only middle score


@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.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 2 of 4
DallasLoanGuy
Super Contributor

Re: why do mortgage lenders use only middle score

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.

 

Retired Lender
Message 3 of 4
BungalowMo
Senior Contributor

Re: why do mortgage lenders use only middle score

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.
BK 7 discharge 06.24.2020 No Fico score at all. Smiley Sad
Message 4 of 4
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