Last week I received a MyFico.com alert that Equifax dropped my score 37 points. I have been in the garden for some time now (paying on time, not applying for new credit, keeping UTI low, etc) and enjoying a nice climb in my scores. The drop was attached to my WFHM reporting “no lates”, “pays as agreed” but the desciption was “loan sold” and reporting a “zero balance”. I called Wells to let them know about the error and they confirmed that this was reporting correctly because our loan had been sold but the clerk I was speaking to thought that this should not cause any change in my score; offering that “loans are sold all the time and this is really a behind the scenes sort of thing”. She understood my concern and started an investigation.
Just today she followed up stating that there were many other Wells customers complaining about this same issue with their scores. She sent me a letter confirming the details of my loan thinking that it might be helpful in disputing with the CB’s. But she also confirmed there is a Federal regulation that will not allow lenders to report a “NEW” loan for 60 days. In my mind, this is NOT a new loan but apparently the regulators see it differently. She also stated that WFHM will not be reporting the new loan until January 2016 which is NOT 60 days.
My question and concern is that this event is somehow different than a normal loan servicing change and that there will additional collateral damage.
This is a HAMP goverment loan modification completed in May 2013. As part of the loan modification there was an “pay for performance” $ 5000.00 incentive paid $ 1000.00 annually as long as our loan remained in good standing.
Anyone have any thoughts??