Loan Modifications and Credit Score Declines
Consumer Information July 19th, 2009I haven’t seen this reported elsewhere.
Bloomberg.com’s “Cheaper Mortgages Spark Lower FICO Scores for Payers” offers an under-reported take on the impact of home loan modifications on borrowers’ FICO scores. Apparently, one consequence of reworking a home loan is a reduction in credit score. FICO scores range from 300 to 850.
The article includes a story about a borrower who saw his credit score drop by 121 points after entering the trial period for a loan adjustment under the President’s Home Affordable Modification Program.



July 19th, 2009 at 8:01 pm
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