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- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
About Tri Merge Credit Report
When you apply for a mortgage your credit report plays a significant role in qualifying you for that mortgage.
If you have applied for a mortgage you must have heard the term residential mortgage credit report or tri-merge credit report. In this post, we will understand what is a tri-merge credit report in detail.
What Is A Tri Merge Credit Report?
A Tri Merged Credit Report is also known as Residential Mortgage Credit Report. When you apply for a mortgage, your lender will require your FICO scores and credit report generated from all three credit bureaus and the scores and reports for the co-applicant.
If the customer is willing to take a co-applicant at the time of mortgage application, the lender will consider six FICO scores and six credit reports to check the qualification of that particular application.
This is a requirement only in mortgage lending which is also known as a tri-merge credit report as it is a guideline suggested by Fannie Mae and Freddie Mac.
You won’t see this in any other loan application like an auto loan or personal loan.
Why Tri Merge Reports Are Required? How Is It Generated?
The reason why three reports are required is that all three credit reporting agencies do not have collated data amongst each other.
This means Transunion would not have merged data with Equifax and Experian and vice versa.
These residential mortgage credit reports are generated by companies that are specialized in merging the data from all three credit reporting companies and provide collated data for the applicant’s and co-applicants FICO scores and credit reports hence they are called tri-merge credit reports into one master credit report.
These companies are called mortgage reporting companies or intermediary bureaus. This master report is used by mortgage lenders to determine credit qualifications for applicants.
This report is generated in a very unique format with multiple pages which is compatible to be read by both humans and systems.
These reports are bifurcated into sections where you have all the information about the applicants including scores from all three bureaus, the latest credit checks done, and details about all your credits with the date when you opened and your payment history on each one of your credit products.
The format of the report is made in such a way that it could be inserted in the systems for underwritings as well as could be read by humans as well.
How Does The Tri Merge Report Help?
The residential mortgage credit report is one of the most helpful credit reports compared to any other report as it includes a credit report and your FICO scores from all three credit reporting agencies.
Moreover, the format of the report is easy to comprehend as it is sectioned in a way as if you are reading a book with everything predefined so that you can skip to any portion of the report at any time.
Can An Applicant Have Access To The Tri Merge Report?
As a consumer, you don’t have access to buy or pull the residential mortgage credit report. The only person who has access to this report is your lender after you have applied for the mortgage with them.
Next time when you are buying a new property or refinancing your existing mortgage, you can ask your lender to share a copy of this report because you would not be able to get this report anywhere else.
Conclusion
This report is significant to help lenders know your credit qualification. Based on the FICO scores on the report, your lender will be able to determine the interest rate on your mortgage.
Though the tri-merge credit report is important but difficult to access without a mortgage lender, if you still want to keep track of your credit, you can always use the free credit report option provided to you by Experian, Equifax, and Transunion once every year.
