Are Some Credit Reports "Fake News"?

Reblogger Jeff Dowler, CRS
Real Estate Agent with Solutions Real Estate CA DRE #01490977

Gene provides us, and consumers, with some terrific education about credit scores, as well as reporting on the recent fine incurred by Experian for some bad behaior. You'll want to read this, and share it.

 

Please stop by Gene's post to thank him there, too, and comment.

 
 
Are Some Credit Reports "Fake News"?


Per a Housing Wire report, Experian (one of the 3 major credit bureaus) was fined $3 million for representing that their "purchased" credit scores were the same scores used by Lenders for Mortgage Underwriting decisions. (Housing Wire article link)

Their consumers were, (and I am paraphrasing), "receiving the exact same credit scores that Mortgage Lenders use to make loan and credit decisions".  This, they promised, would prove to be a great advantage to these consumers as they started their home shopping and mortgage search.

 

The CFPB (Consumer Financial Protection Bureau) found Experian's sales approach very misleading ... because it was.  They took appropriate action and Experian must now pay for having performed their business in this manner.

The sad outcome of these headlines:  Experian's actions may create further distrust of the credit and financing process.  And that, in turn, may further increase the misconceptions and fears many consumers have surrounding credit scores themselves.  

 Gene's Helpful Links

Credit scores (and credit scoring) can be a very beneficial tool for consumers.  But they're rarely viewed as such.  Too often, consumers hold a negative view of credit scores and scoring ... and they don't understand how they function or how they can benefit them.  

Because of this view:  Many potential mortgage clients fear their credit scores being pulled when it comes time to seek financing.  I find this to be true with my mortgage clients, whether the client has good or poor credit ... or falls somewhere in between. 

Many believe if credit scores are pulled, they'll take an adverse hit. No matter the truth or their particular circumstances, it can be hard to convince them otherwise.

To their defense:  It's easy to understand why many believe this to be a fact. It's not uncommon to hear stories about this having happened. 

And it's true, depending on the timing of the credit pull and the specific financial/credit circumstances of the client, there can be some impact seen on scores. But typically, if any impact occurs, it's minor.

It's also true:  Needless inquiries on credit scores should also be avoided. The same goes for multiple inquiries. Too many inquiries made in a short period of time can prove detrimental to credit scores.


But currently:  Much of the mortgage pre-qualification and approval process rests upon credit scores.  It's absolutely essential for an LO to pull a tri-merge Mortgage Credit Report in order to provide clients credible advice and an opinion as to the "approvability" of their financing. 

Without having credit scores pulled and to rely upon, the reliability of any Approval is weak. It's what could be currently referred to as "fake news" ...

Factual credit scores matter ... and Experian should have known that. 

Consumers also need to be aware and know how their credit scores affect their mortgage "approvability", the mortgage programs available to them, their interest rate, and more ... 

Working with a New Lenox - Chicagoland Mortgage Originator that is thoroughly educated and sensitive to how credit scores work and affect their clients' financing is vitally important too. Receiving the correct credit advice can mean monetary savings for a Borrower. It can mean the difference between a fluid successful home buying experience and mortgage processing ... possible delays ... or even failure. 

When you hope to finance a new home (or refinance your present one), it's no time to rely on "fake news" ... credit scores received from sources that cannot be used in your Mortgage Underwriting Process or for Mortgage Approval. 

Let's talk today. Together's we'll discuss the most opportune time to pull your credit scores. Then relax and follow my expertise and guidance moving forward. I have your back and want you to successfully close your loan. 

 

 Contact Me to Find Out More!

 

            
* Looking to find what possibilities exist for you? Hoping to Buy or Refinance a Home in New LenoxWill County, or elsewhere in the Chicagoland area?  Contact me!  I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
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Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

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Re-Blogged By Re-Blogged At
Topic:
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Groups:
Certified Residential Specialists
SAN DIEGO Real Estate Agents & Loan Officers
Buyer Information - What Buyers Need to Know in Today's Market
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Tags:
experian
credit scores
jeff dowler crs
what you should know about credit scores

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Rainmaker
3,167,277
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hey Jeff Dowler,  Good reblog and I wonder if I should cancel my newspaper and all my news channels for the next 8 years.

 

Mar 29, 2017 08:51 AM #1
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Ha, the fake news headline drew me in and I missed the original post. Gene does a good job explaining the importance of making sure credit reports are gleaned from credible sources. 

Mar 29, 2017 08:58 AM #2
Rainer
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Rebecca Lewis
ODAT Realty Services, Inc - Grayson, GA

I missed it the 1st time around so thanks for the great reblog. Very interesting that a national credit bureau would mess with consumers like that.

Mar 29, 2017 09:15 AM #3
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Great choice for a reblog.  Thanks for sharing this one with us.

Mar 29, 2017 09:21 AM #4
Rainmaker
757,729
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Jeff that is a good post.

Mar 29, 2017 09:25 AM #5
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff,  Gene provided excellent information. 

The credit reports are not fake, but the Credit Bureaus trying to tell their consumers that the scores are the same regardless if it is a consumer report or mortgage report is.  Both use the same information but put different weight on the information which then results in different scores.

Mar 29, 2017 12:41 PM #6
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Not sure Will Hamm 

And the advertising for getting your FREE report online is part of the problem Debb Janes EcoBroker and Bernie Stea JD 

It does not surprise me at all Rebecca Lewis  Glad they were caught AND fined!

Jeff

Mar 29, 2017 08:48 PM #7
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Glad you saw it Belinda Spillman  - there is some really good information here

Thanks Nick & Trudy Vandekar 

That's good to know George Souto  but no doubt consumers don't know or understand this!

Jeff

Mar 29, 2017 08:49 PM #8
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