Free Access to Credit Scores Act

Industry Observer with No Longer Processing Mortgages. MLO #293441 expired

Fair Access to Credit Scores Act of 2013

There is a bill before Congress called the Fair Access to Credit Scores Act of 2013 (introduced in March), and some believe that this will be of benefitCredit Scores? to the home buying public.  They believe that if the consumer is provided with a FREE credit score, along with the free credit reports that are now law, that they will better understand where they stand on the credit continuum, and aren't as likely to get overcharged in their use of credit.

There is a well-known national magazine which is supporting this Act.  Yet even they have article in current issue indicating that there is no ONE score, even from one credit bureau for one type of loan.

What everyone needs to know, and I believe will be much more helpful, is that each person actually may have many credit scores (could be approaching 40-50).  There may be different scores for mortgages, car loans, department store credit (multiple – dependent on type of store - clothing, sporting goods, hardware, etc.), or generic credit card (MC/Visa/Discover/etc.).  Even the mortgage scores could vary depending on whether the lender is broker, local bank, credit union or national bank.   Which score is right?  Every one of them, but for different audiences and purposes.

If your client got a report from the credit bureaus with ALL his credit scores, how would he know which one his lender was going to use?  This is another one of those "feel good" bills being put together by people who have no understanding of the complexity of the issues involved. In other words, this is likely to fit the proverb "you get what you pay for" very well.


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Steven CookSteven T Cook
Loan Officer, MLO-293441      

Cascade Pacific Home Loans  NMLS ID 76988
720 S 333rd St  Federal Way  WA  98003
Office 253-874-1111 | Cell 253-677-1064
Toll Free 1-800-874-8760 | fax 253-295-3901 |

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Comments (5)

Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Steven, the issue I have with many of these services that charge the consumer for their credit scores is that the report is not scored the same way as for a mortgage.  I have seen variances up to 90 points.  That can be the difference between a new home and not qualifying.

Jun 04, 2013 11:03 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

All credit reports are not necessarily created equal as you well know. Many folks just don't responsibility for their credit and all the law changes in the world won't make the results and better.

Jun 04, 2013 08:03 PM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Kathy -- that is exactly the point I was trying to make.  Getting a free score - how will it be any different from the one they are paying for, which is that far off?

Joe -- that is one of the issues we are having in the country, and the several states: if someone complains about something, we have to pass a law, even if we don't understand the system we are mucking with at all.

Jun 05, 2013 03:12 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Steven,  Another seriously flawed bill, IMHO. The entire credit reporting system needs to revamped.  Far too many errors made by others we have no control over. Far too many collection businesses profiteering from ill-reported claims. It's a battle from hell-0 to get these matters corrected and once again, the individuals had nothing to do with who, what, when or how matters are reported. Flawed, indeed.  I have an 800+ credit score which contains errors ... dumb-a$$ mistakes made even on my address which has been the same for 30 years.  Go ahead, as me how I really feel (LOL)

Jun 05, 2013 08:05 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Kathleen -- they would never allow incorrect information to spoil their data banks ;-)  Even after you get things corrected, some of the errors reappear with the next update from bad seed.

Jun 05, 2013 08:43 AM