Scoring Clarified

Kenneth Harney’s article on credit scoring (“Good Rate Depends on Credit Score,” Dec. 14 ) contains some misleading statements:

First, Fannie Mae and Freddie Mac do not have a minimum score, 620 or otherwise. Both require a comprehensive analysis of borrowers scoring in the 620 to 660 range; both will purchase loans for borrowers scoring below 620 if there are strong compensating factors.

Second, for most applicants, scores from the three repositories are fairly consistent. Creditor inquiries not instigated by a consumer’s request for credit should not trigger a score change at all.

Third, most lenders use “the lower of two or the middle of three” method of selecting which repository score to use.

Last, most lenders have discerned that by obtaining three scores, the borrower has the optimum chance of scoring within a program’s thresholds.

ANNE ELLIOTT

Senior vice President

CUB Funding

Calabasas