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In Response To:
Thread Starter: Anonymous
Title: Re: Rescoring Credit Reports - Anyone doing this?

Hello!
We are looking into the services offered by our credit agencies we order our reports through and they offer the ability to run what-if scenarios and even to then take it a step further and rescore the credit report after the client has completed what was run in the scenario. We understand that we'd need to have clear procedures and communication with the borrowers on that fact it's not guaranteed, etc. What I'm curious about is if anyone else is offering this type of process to their customers in the mortgage process.

1. We definitely would do this if there is information not accurate on the credit report and the borrower can provide documentation to support said inaccuracies in order to provide the best level of service to our customers we can. This scenario isn't our roadblock.

2. If we run the what-if scenario and it indicates paying down or off certain tradelines and our program parameters allow for it, we'd like to discuss with the client the option of rescoring or waiting the 30+ days to re-run their credit (only if they want that as it needs to be permissible purpose). Anyone doing this? Our Corp. Compliance department is adamant that this is not permissible, even though it could provide benefits to the client; it also poses risk of it not presenting scores based on what was assumed.

3. What is your take on this? I've read and read and it seems to be a grey area and more based on appetite for risk and ensuring we have our processes and procedures in place to make certain we are treating all borrowers the same and only following the guidelines. Am I missing anything that would stop this?

4. I've done the research with the investors and I'm good on that front.

Any positive or negative feedback on this is greatly appreciated.