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Democracy in Housing

This Could Boost Millions of Credit Scores and Create New Home Sales

  • 15 Mar 2017 3:11 PM
    Message # 4668980


    Equifax, Experian, and TransUnion announced they will soon remove tax lien and civil judgment data from some consumer credit records. The reason for this change is that many liens and most judgments fail to include vital pieces of information. Beginning on July 1, the public records data the firms use must include these data points: the consumer’s name, address, and either a social security number or a date of birth. Existing reports that fail to comply will be struck from the consumer’s credit record and new data that does not have that information will not be added.

    Credit scores are weighed carefully by lenders in making decisions about loan terms and how much consumers can borrow, and can be very important in securing a sustainable mortgage. FICO estimates the changes will cause an improvement to about 12 million consumer scores; however the boost will be modest, likely less than 20 points.

    “It’s going to make someone who has poor credit look better than they should,” asserts credit specialist John Ulzheimer, a former manager at Experian. “Just because the lien or judgment information has been 

    Last modified: 15 Mar 2017 3:16 PM | Bill Price, ABR, CRS, CREA,GRI,ePRO,TAHS,SMP,SFR,TRLP (Administrator)
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