Consumer complaint received 2022-06-05
Company: Experian Information Solutions Inc.
State: CO
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
Currently XXXX is reporting my original loan amount as {$440000.00}, which is the amount of my first mortgage. However, when XXXX reports the current balance, it is combining the balance of my first mortgage and my down payment assistance. This is resulting in the current balance being higher than the original loan amount. Last reported balance {$450000.00} on XX/XX/XXXX. 

By reporting only the first mortgage as the original loan amount, but then combining the totals for the first mortgage and down payment assistance as the remaining balance, it causes my loan to reflect that 0 % has been paid. 

I received a responses from XXXX dated XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX stating : The current balance that reports to the credit bureaus each month will consist of all amounts, including down payment assistance. No changes are needed.

However, based on their response, this is NOT how my account is being reported. They are basically using the total for one loan to report the original balance and then using the balance of two loans to report the current balance. This seems inaccurate and not consistent. 

The original loan amount and current balance should use the same information to report the totals. The original balance and current balance should both reflect the first and down payment assistance. 

The way XXXX is reporting my account is hurting my credit score. I have been denied credit due to " the balance on your accounts is too high compared to the original loan amounts, lowering your score '' and " proportion of loan balances to loan amounts is too high ''. 

Below is the response I received from MYFICO as to why this inaccuracy hurts my score monthly : FICO weighs the amounts paid down and balances of mortgage and non-mortgage installment loans against the original loan balance. A balance to loan ratio of 0 % is considered risky, which will negatively impact your credit score. 

Due to the way XXXX continues to report my mortgage, my balance to loan ratio is 0 %. Despite making all payments on time and making additional payments towards my principal every month. 

Original Loan Amount/ High Balance Being Reported to Credit XXXX XXXX {$440000.00} Current Principal Balance Being Reported to Credit XXXX XXXX {$450000.00} The Original Loan Amount/ High Balance only includes my mortgage. 

The Current Principal Balance includes BOTH the mortgage & XXXX balances. 

Because the Current Principal Balance Reported ( {$450000.00} ) is more/ higher than the Original Loan amount Reported ( {$440000.00} ) the percentage paid off is 0 % What XXXX Says I Burrowed : {$440000.00} ( mortgage ) What XXXX Says I Owe : {$450000.00} ( mortgage + DPA ) On XX/XX/XXXX I was told by a XXXX Mortgage employee that they are mandated to report my account in this way. When I asked where I could verify this information, I was told that I could do my own research. I have not been able to verify anywhere on your website or other Consumer reporting sites that it is mandated to only report the first mortgage as the original loan, but second mortgages and/or down payment assistance will be added on top of the mortgage to report the current balance. 

Can you please verify if this is correct? If so, explain why intentionally reporting in a manner that is harmful to consumers would be required?

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation