Comments on: Why Mortgage Lenders Pull Your Credit History Twice

By: John L.

John L. — Sat, 02 Feb 2013 14:59:49 +0000

A live, interactive blog is a fine idea. Many consumers need live assistance.

My question: How do lenders treat discharged mortgages which are unreported to the Credit reporting companies (Equifax, Transunion, Experian, et. al.) ?

I paid off (2004) & discharged (2010) a mortgage on my principal residence, I have clear title. The last holder was not member of Eqiufax, Transunion, et.al.

Will lenders enter this discharged mortgage into the application/ calculation in granting a loan in the future ?

By: Ilyce Glink

Ilyce Glink — Wed, 08 Sep 2010 20:44:31 +0000

Jerry - not sure why your credit score dropped when items were removed from your credit history. But there could be other things bringing you down. Give it another 30 days, and if your credit score hasn't "recovered" to where it was previously and if there are no other negatives that might be pulling down your credit score, you should do a deeper investigation and write to the credit reporting bureaus.

Thanks for your comment. We're talking about doing a live interactive comment time on the blog with our Equifax Credit experts. This would give you face-to-face real-time access to people with the best credit information.

Would you be interested in that?

By: Ilyce Glink

Ilyce Glink — Wed, 08 Sep 2010 20:42:39 +0000

Doug:

Thanks for your comment. It's true that mortgage lenders can find out almost instantly when one of their borrowers (or, in the case of mortgage applicants, borrowers-to-be) does something that impacts credit. But HUD claims to be laying off on the rule that requires a second credit history/score be pulled - in fact, they claim they never intended for lenders to do that, it's just that the lenders (I think) have swung from being carefree about lending to being beyond-cautious. We'll have to see how this plays out over time.

Thanks for your comment.

By: Doug Francis

Doug Francis — Fri, 03 Sep 2010 21:22:27 +0000

Home buyers should understand that their mortgage lender has put an "alert" on their credit file to notify the lender of any new lines of credit prior to closing. Yup, just like Equifax notifies me when a balance increases or an account changes… their mortgage guy gets an e-mail alert!

By: Jerry

Jerry — Thu, 02 Sep 2010 02:56:45 +0000

I disputed some things on my Equifax report and they were removed. However, my score dropped nearly 50 points even though the negative items were removed.