Credit Score Changes Good Read

Dated: 07/21/2017

Views: 158

With recent changes to rules about what information can appear on a credit report, millions of potential borrowers can expect to see an increase in their credit score.

What are the changes?
As of July 1, 2017, credit reporting agencies will no longer include information about tax liens and civil court judgments in consumer credit reports unless the records contain a name, address, and social security number or date of birth that match a consumer's file. Under the new guidelines, reporting agencies are also required to update their public record information every 90 days.
These changes are in response to recent pressure on credit reporting agencies. Every year, agencies hear complaints from thousands of consumers about false information on their credit report and the subsequent difficulty they have in correcting that information.
What does this mean for borrowers?
Nearly 50% of tax liens and 96% of civil judgments do not meet the updated identification standards, according to LexisNexis Risk Solutions. After July 1, these records may no longer affect a potential borrower's credit report.
As a result of this change, FICO® estimates that about 12 million people will experience an increase in their credit scores. The majority will see up to a 20 point increase, and some will see increases of 40 points or more.

These updated credit reporting guidelines could help decrease your client's mortgage insurance premiums and interest rates and help expand the loan programs they may qualify for.

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Carolann Newton

I was a domestic paralegal for 8 years prior to Real Estate. Since I have been in Real Estate I have grown to love this business, even though it does have it's challenges; it is very exciting. There i....

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