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Home / Loans / Residential Mortgage Credit Report (RMCR) vs Consumer Credit Report

 

Residential Mortgage Credit ReportWhen you apply for a credit card or an auto loan, a lender will usually pull your credit report and corresponding credit score from a single agency. That means that they will be considering a single report; two if you have a co-signer/joint applicant. When you apply for a mortgage, lenders are much more thorough. They will pull your credit reports from all three major agencies. That generates three reports, six if you have a joint applicant. That can be an overwhelming amount of data and would bring the mortgage process to a snail’s pace at best. To deal with that mountain of information, mortgage lenders hire a mortgage reporting company, which will generate a residential mortgage credit report (RMCR).

What is an RMCR?

Your RMCR, sometimes referred to as a tri-merge, is a composite of the three/six reports and scores that were sent by the reporting agencies. This report merges all of the information provided in a purely cosmetic way. It is cosmetic in that the information is only merged for this transaction, not for a real credit report in the future. The merging puts all of the information in an easy to read format for a lender…all scores in one place, all negative accounts in another, all positive accounts in yet another, etc.

Residential Mortgage Credit Report vs Consumer Credit Report?

RMCRs are provided by specialized mortgage reporting companies like CoreLogic. Typically they are not provided directly to consumers – only to lenders who subscribe to the servive – though your lender might provide you with a company of your RMCR in your loan paperwork. As stated above, the primary difference is the way so much data is consolidated into a more readable layout, though they include employment verification information and other specialized information pertinent to loan officers.

Why all three reports?

The best answer is money. The money being lent usually represents the largest investment a borrower will ever make. Also, since there is more money involved, there is more risk to the lender. Since lenders are risk-adverse, they want a full picture of who they are lending to. All three reports and scores gives them the best picture available, thus protecting them from making a bad loan as much as possible. Another answer is getting a correct picture. Your reports will contain mostly redundant information, but each may have a stray account that the others do not have. This could be the pivotal issue that makes the difference between approval and denial.

Does an RMCR lower your credit score?

Since these are hard pulls from a credit reporting agency, you may expect your credit score to dip. Not so with a mortgage inquiry. FICO ignores the first 30 days worth of mortgage inquiries so that people are not adversely affected if they choose to shop around for the best mortgage offer. After 30 days, the pulls are discounted somewhat, so the impact is lessened. You will want to group your applications appropriately to avoid any dip in your score. If you are still applying for a mortgage after 30 days, there is most likely an issue with your credit that you need to address instead of continuing to apply for loans. You might want to take a step back and look at the 6-month loan application prep plan we’ve discussed in the past.

 

About the author: Jerry Coffey

 

Jerry Coffey spent many years in a debt-riddled gray area somewhere between broke and desperately broke. His seemingly endless need for more and more cash led him to payday loans, repossessions, bankruptcy, and depression. After years of the same financial style, he heard a piece of advice that inspired him to find a way to change. The advice: ''The very definition of a fool is someone who continues to do the same things, but expects different results.'' This led him to a much more frugal lifestyle that sees all of his bills paid on time and a growing savings account. Even the seed of a retirement account has begun to sprout.

 

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