Help! Transunion Mortgage Score dropped 42 points

[Faith_Hope]

My husband and I are under contract. Our credit application will have to be updated in 10 days. When we initially applied his MS was 660. My score are higher so I won't bother mentioning them since the lender will use his. 

Today his FICO scores updated and his Transunion score dropped 42 points to 627. However, his middle score is still 664. The problem is that we disputed 8 accounts that were included in a 2017 BK. Those 8 accounts for whatever reason is showing up as late payments the month of the BK filing-- although he was never late and paid on all accounts in that very month. Nonetheless, All 8 account statuses on the Transunion report are now showing as "Paid or Paying as Agreed" which is different from the other two bureaus which has "Included in BK." Additionally, my husband maintained an auto loan that was included in the BK and paid the account off within 1.5 years because the balance was relatively low. The problem is Capital one auto finance has been reporting the (on time) payments to Transunion and the month that he paid off the account they reported it as a CO. So now, it's showing as a "recent" negative account/late payment. They also show that the account was closed the month and year it was paid off. To my understanding and similar to the information reported to the other CBs, the account should show as closed in 2017 when the BK was filed and no information should've been reported since the BK filing. I've called transunion and they were NO HELP! I don't know what to do and I feel bad because we should've never disputed anything and  just left it alone. Transunion is telling me that there's nothing they can do because the dispute is still ongoing. Is there anything I can do? I plan to contact the creditors and notify the lender as soon as possible. Not sure if it's a big deal but i'm pretty upset about it. 

Any advice is greatly appreciated. 

[cashorcharge]

Sorry to hear your experiencing this.  The way I see it, despite your efforts, any disputes would not resolve in 10 days and thus may not re-report the way you'd like.  You mentioned reaching out to your lender and with only 10 days to spare, putting documentation together to tell the story if he has to pass it along may be your only recourse...

[donkort]

If the Middle Score is the same, you just might be okay.

I hope ShaneTheMortgageMan could confirm this.

[Faith_Hope]

Thanks Y'all! My lender seemed pretty annoyed that I even filed the disputes. I totally understand his frustration. I take accountability and just hope to be able to positively move forward. Lender said he would repull our scores to see where we stand and then he would try to fix any potential issues if needed. I've been warned to refrain from doing anything that relates to our credit without consulting him.

@ShanetheMortgageMan my husband's Mortgage 5,4,2 as of yesterday were 664, 627 (dropped 43), 662 (dropped 9). Correction from earlier---His middle is actually 662. Should we be concerned that a repull would drop the middle score below our initial approval score? Our initial scores were ran on Feb 18th. Repull was scheduled on June 18th We are expected to close in July (official date is still pending). Our locked rate expires 7/30. Can the lender dispute the incorrect information (which is clearly incorrect).  and request a rapid rescore?

[ShanetheMortgageMan]

The lender can do a rapid rescore, but without documentation from the creditor it's a gamble on what the creditor will come back verifying (it's done as a "no doc" option and usually costs more).  As has been pointed out, it sounds like the middle score is in the same 660-679 bracket so it shouldn't impact the interest rate... but if it's conventional financing the lender would still need to get an automated underwriting approval and additional derogatory information can impact those chances (FHA loans can still be approved via manual underwriting if you don't get an automated underwriting approval).

[Faith_Hope]

Thanks @ShanetheMortgageMan 

So today I found out the reason why the score dropped.

Capital One Auto was included in his BK2017. He paid off the car in March of 2020. Capital One closed the account using 5/26/2022 as the close date. Capital One Auto was his second oldest account.

so question, is the creditor obligated to report accurate close date which should technically be in 2017? If yes, can the lender dispute this and Will it even make a difference with his score?

[TheKid2]

---

@Faith_Hope wrote:

Thanks @ShanetheMortgageMan 

So today I found out the reason why the score dropped.

Capital One Auto was included in his BK2017. He paid off the car in March of 2020. Capital One closed the account using 5/26/2022 as the close date. Capital One Auto was his second oldest account.

so question, is the creditor obligated to report accurate close date which should technically be in 2017? If yes, can the lender dispute this and Will it even make a difference with his score?

---

The creditor is absolutely obligated to report accurate information, but I'm not sure there's enough information. If it was paid off 3/20 like you said, then I don't see 2017 being accurate. A statement from Cap1 would definitely help support your open dispute. It's a risk to continue pushing for a date that you can't document.

If the middle score is about the same it could not matter.

[babygirl1256]

@Faith_Hope  So sorry that you and your husband are experiencing this issue. I will private message you the TransUnion Executive Escalations Team (EET) as they are superb. In the past, they have quickly resolved issues on my behalf and my daughter's behalf. The EET reports directly to the Office of the President. Please keep us posted and best wishen in resolving the issue in your favor.

[Faith_Hope]

@TheKid2  I guess I'm confused because I thought accounts included in bankruptcy could no longer report to the CBs after you've filed. Is that not correct? He filed BK and was discharged in 2017. The debt was not reaffirmed but he kept paying because he wanted to pay-off the vehicle which he did in 2020. Once you file BK, creditors do not send statements. Not sure what documentation they would need other than to show it was included in Bk. 

Any input on which should be the correct close date? 

[Faith_Hope]

@babygirl1256  that would be wonderful. Thank you so much! 😊 My lender will rerun our credit on 6/20. As mentioned previously, my lender stated that we should be okay (w/ MS remaining at 662)-- but if he needs to resolve any issues, I'd be happy to offer him whatever information is provided that could help our situation. In the interim, I'm choosing to remain positive and hopeful that we will be okay. 

Thank you all for your input.