Skip to main content

Credit Scores Now Free From Tax Lien Information

Phil Hall
Apr 17, 2018
The Federal Housing Finance Agency (FHFA) did an about face by announcing it will not make a decision this year about updating the credit score model used by Fannie Mae and Freddie Mac

Beginning this week, some Americans will start to see their credit scores increase due to the removal of all tax liens from consumer credit reports issued by Experian, Equifax and TransUnion.
 
Moving forward, the three major credit bureaus will not factor civil judgment data and roughly half of all tax lien data in their credit scoring. The change in credit scoring follows a 2017 report by the Consumer Financial Protection Bureau that determined the removal of public records for judgments or liens from credit reports could help 17 percent of consumers receive a higher credit score band while 75 percent of consumers would experience little or no impact.
 
However, not everyone is convinced this is a game-changing positive move. The Consumer Data Industry Association is predicting “only modest credit scoring impacts” from this action, while Nick Larson, business development manager at LexisNexis Risk Solutions, told CNBC that lenders and servicers will need to hedge for the risk created by the removal of this data from the credit scoring, which could lead to higher interest rates.
 
"Overall, consumers actually get hurt," Larson warned.

 
Published
Apr 17, 2018
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021