Last week I shared with you some information on the the new score that will be introduced in March of 2012 by CoreLogic. In some situations the new score supplement will end up helping applicants, and in other situations it may hinder an applicant’s request for loan approval.
Here are a couple examples of what could potentially happen:
Jack has an excellent Fico score of 745, and normally this would allow him to enjoy the best rates from a lender. However, his CoreLogic report and score supplement show evictions from a landlord in the past 2 years. This added information may prompt the lender to charge a higher rate.
On the other hand Sue and John have minimal credit accounts and reduced Fico scores. They are looking to buy a home and get a mortgage approval. With the supplemental CoreLogic credit report showing prompt rental payments for the past 8 years the underwriter decides to approve a loan which otherwise would have been denied.
Since the score supplements are not readily available yet it is hard to know just how it will affect consumers and lenders. It is important to note that all credit reports and scores used by lenders are subject to the Fair Credit Reporting Act. These laws will allow us to correct, update, and modify information on any kind of bureau report and score supplement. No matter what is on any report created there is always room for us to improve it.
Find out more at northshoreadvisory.com
And for more information on the new CoreLogic scoring system visit: