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Mortgage Broker News | 15 Jun 2016, 08:15 AM Agree 0
Following the launch of BEACON 9 by Equifax, brokers are reporting record-high credit scores – including one likened to mythical creatures
  • Ron Butler | 15 Jun 2016, 11:52 AM Agree 0
    I think we should all realize once a score goes past 760 no one cares, the insurers, the lenders and the background investors do not care. But if a score goes below 700 or 680 it may be a very big deal to mortgage brokers, it may lose access to certain rates under 700 and under 680 totally changes the debt ratio calculations.

    We are going to start to see some very bad effects of Beacon 9. Today we had a client change their mind about the product they wanted, we had to go to a new lender and run a new bureau because the old CB was 40 days old. Old Score: 742, New Score: 648. The only changes: balances on the only two trade lines the client had increased closer to the credit limit by $200.00 each. No other change. Client has a mature file with zero derogs of any kind and is no over limits.

    No one needs a client to go from a 795 score to a 845 score but we sure as heck do NOT want a client to go from a 742 to a 648 with Beacon 9.
  • John Martin | 15 Jun 2016, 07:33 PM Agree 0
    Ron is correct. This new introduction will hurt a lot of people. Which is most unfortunate and unnecessary. Should have left it as it was possibly.
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