More home mortgage changes coming. Due to new ECOA guidelines The three ( Equifax, TransUnion and Experian) repositories will no longer report Tax liens and some public debts on credit reports.
Here’s potentially good news for consumers: The nation’s three largest credit-reporting agencies will soon exclude tax liens and some civil debts from their reports.
The change by Equifax, Experian and TransUnion will take effect July 1, as part of a plan to ensure that consumer identifications in the data are accurate and current, the Consumer Data Industry Association, a trade association for the companies, said Monday.
In a revision that could improve consumers’ credit scores, the credit agencies will exclude the tax liens and civil debts if reports on those obligations don’t include a consumers’ names and addresses, as well as Social Security numbers and or dates of birth, the CDIA said. Many liens and most judgments don’t include all of that data, in part because Social Security numbers are often redacted for security reasons.
What this means is a lot of credit scores will increase to make more programs available to borrowers but we will have to run Fraud Guard to make sure liens and or judgments are not filled against them. When we pull a credit report from now on we will also be pulling Fraud Guard to make sure we are OK.
Buck Denton, Sales Manger, Guild Mortgage, 678-765-6961 Ext 101 Office