Selection and Use of Credit Scores

Ratings are used to the level of subscription type … FICO credit score is developed by a national credit-rating company to determine, and called ….

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Selection and Use of Credit Scores
The Credit Score is a number summarizing an individual\’s credit profile that indicates the likelihood that a Borrower will repay future obligations.
The most common type of Credit Score is developed by FICO, a national credit scoring company, and is called a FICO Bureau score.
Once you’ve determined the credit scores are usable, the Underwriting Score is determined as follows:

  • If there are three usable Credit Scores, the middle score is the Underwriting Score*.
  • If there are two usable Credit Scores, the lower score is the Underwriting Score.
  • If there is only one usable Credit Score, that score is the Underwriting Score.

Indicator Scores
When a Minimum Indicator Score is required, you (or the Seller) must:

  • Note the Underwriting Scores, the Indicator Score, and how they were identified, on the Form 1077, Uniform Underwriting and Transmittal Summary, or another similar document in the mortgage file
  • Retain the source documentation for the Indicator Score in the mortgage file
  • Deliver the Indicator Score in the credit score value (CSV) field and a credit score type (CST) on Form 11, or Form 13SF, as applicable Identifying an Indicator Score Using the Middle/Lower then Lowest Method.
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