Data Point: Mortgage sold resulted in 22 point DROP

[DebbsSeattle]

My EX fico8 score was 759 last night. I awoke to a 737. WF sold my mortgage to Mr. Cooper. WF reported the mortgage closed. Mr. Cooper has not yet reported the mortgage under their service. No other reporting activities occurred...this is completely isolated and 100 pertains to the mortgage transaction.

I hope the following is true:

My score regains those 22 points in full as soon as it reports.

The "age" of the mortgage has no negative effects.

The mortgage does not report as 100% of loan value based on the acquired mortgage loan and negatively impact my scores.

It seems completely unfair that my score should drop at all for something completely side my control that I have no recourse on whatsoever. I was completely fine with the WF status quo and was not involved in the decision to any degree. I was only notified after the fact. I know this happens all the time, I'm not a special case. It just happens that I am in my active debt payoff project and rely upon my constant score feedback for motivation and a sense of accomplishment.

Does anyone have any experience and wisdom to lend for this type of occurrence? How did it wash out in your circumstance?

[DakotaM]

In my case, my score actually went up 15 or so points in the interim but returned to baseline once the new mortgage reported. I think that took about a month in my case. 

[pizzadude]

This was your only installment loan that's open, is that correct ?

Not a mortgage, but I experienced a similar FICO score drop when my auto loan reported as closed.  

You should regain some points when the "new" mortgage reports, how much will depend on the balance / dates shown on the tradeline. 

[DebbsSeattle]

I also have a personal loan. Called Mr Cooper and they said they WILL NOT report until about 30 days past my first scheduled payment and it can take up to an additional 30 days to be reflected. Lovely. They told me to call WF to complain. Perfect first day with Mr Cooper. If this is a sign of that to come, I will need to pay off the loan as fast as I can after the credit cards are gone.

[BallBounces]

My 3 year old loan was sold to Mr. Cooper last year.

There was zero effect to FICO scoring after the new tradeline reported.

Sometimes, we need not obsess over every iterive step of a longer process.

[DebbsSeattle]

Updated the title as I have now seen 3 different point decreases. Equifax liked the change the least with hitting me for 50 points. Experian was 22 points. The 33 is a VantageScore 4 number from Chase CreditJourney score tracker. TU has not yet reflected a change as of Feb 15...2 days post official transfer date.

[Thomas_Thumb]

Please update once the mortgage reports again and you are rescored. As others have mentioned, scores should return to presale values give or take 5 points.

[DebbsSeattle]

And rounding out the results on the 3b Fico8 this Monday 02.17.2025 is TU dropping from 739 to 676...63 points. 

So Equifax -50

TU -63

Experian -22 although today there was another unidentified -17 point adj on Experian today with no other specific negative movement to tie it too. So I have to wonder if this is related to the WF closed mortgage reporting event as well since -39 pts is far more in line with the EQ & TU adjs.

[Realist]

It's healthy to take a step back and allow the process to play itself out - and allow scores to recalibrate naturally.

When you pay off a debt, there's naturally going to be an adjustment, and often to the downside.  The test of fortitude is the observation on how well you handle your debt under pressure.  It's not a basis of whether you should be scored higher or lower, only that you've removed something from the equation that once was calculated based upon what use to be there - but is not today.  Over time, adjustments will be made.