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3 in 1 report?


gypsie
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In a prior thread, there's a comment: "Mortgage companies generally pull a 3-n-1 report with scores skewed to their industry. Consumers don't have access to these scores"

Can the OP of this comment or anyone else shed more info on this?

Thanks in advance

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In a prior thread, there's a comment: "Mortgage companies generally pull a 3-n-1 report with scores skewed to their industry. Consumers don't have access to these scores"

Can the OP of this comment or anyone else shed more info on this?

Thanks in advance

Different credit scores for different industries (i.e mortgage, auto, insurance, etc.)

The versions used by mortgage companies issuing a trimerged report through a reseller...

Equifax Beacon 5.0

TransUnion FICO Risk Score, Classic 04 -or- the Classic 98 model

Experian/Fair Isaac Risk Model V2

Most mortgage industry people don't know there are two versions of TU currently in use and are puzzled by it.

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Many consumers will obtain a credit score, sometimes from FICO itself and then get frustrated because (when borrowing) a lender will have a completely different number. The majority of lenders use scores provided by software that is skewed to their own industry. The mortgage industry is a good example of this. The scores on a tri-merge (mtg) report place most emphasis on how you have managed housing debt. The next most important criteria is how you have managed other installment loans, like auto loans. Lastly, the software looks to how you manage revolving debt.

So, a mtg CR will reflect very hard for a foreclosure, moderately hard for a vehicle repo and less so for lates on a CC. The auto industry has their own scoring programs and I'm sure that CC companies do also.

So, given the same data, on any given day, your "credit score" can vary widely depending on the source of the algorythms used to calculate that number.

I see people asking "which one is my REAL credit score?". All the numbers are real. Very few of them are ones that a lender will get. Hence the advice you see here not to focus TOO much on that #. Follow actions that build a good credit history and the # will be what it needs to be.

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Thanks for the replies, that's quite useful info!

So, when I see sites that advertise -mortgage qualification for 680 score, (like lending tree), that's basically just BS- because they're going find lenders who will then pull a tri-merged report with their own scoring system tailored to meet the mortgage co standards. Therefore, even if a person applies for a mortgage with a fico score (my fico) of 680- he or she may be turned down if there's a foreclosure within the CR.

scoring is so complex

Ahntara said, "Hence the advice you see here not to focus TOO much on that #. Follow actions that build a good credit history and the # will be what it needs to be."- Here Here to that!

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'>There are no mortgage-industry specific FICO scores, fwiw.

Hey Direred,

"More than 70% of the 100 largest financial institutions use FICO scores to make billions of credit decisions each year, including more than 75% of mortgage loan originations, according to Fair Isaac. In addition, there are variations of the model that are tailored to different kinds of credit: auto, bank card, personal finance and installment loans. Some mortgage lenders and credit card issuers have developed their own credit scoring models, which they use alongside of the FICO model when evaluating an application."

Evan Hendricks "Credit Scores & Credit Reports" Page 26

But now we're splitting hairs and I don't know if your post was directed at me. I read here more than I post and I have learned alot from your posts as well as other learned folks on this site. My two cents.

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I think sr28b is dead on. That was exactly what was pulled when I had a mortgage broker pull my credit. The tri-merge report was given to me. And there was subsequently one inquiry on each CR (EQ, TU, and EXP) that stated "Landsafe Tri-Merge Mortgage Report". I suppose they were the 3rd party that actually did instantly performed the three pulls and merged the data.

The report definitely was more comprehensive than any consumer report I had pulled myself, including a SSN verification and other little goodies. But most of it was just a compilation of what can be found in any of the three- just put together to decrease the likelihood that a lender would provide funding w/out knowing the borrower's full history.

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But now we're splitting hairs and I don't know if your post was directed at me.

Nope! :)

Actually, I was corrected at one point on that same point, which I found interesting.

The "classic risk" FICO score that's available from myFICO.com was originally developed for the mortgage industry, though. Off-hand, I don't recall which profiles it has (obviously, only one for TU), but I do remember there was a major scoring change for many people on EQ a couple years back when they updated the scoring system on myFICO.com to a newer model. My score barely budged, but some people gained or lost 60 or 80 points.

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