Updating information on credit reports
For their part, the three national credit bureaus have been tight-lipped about the details of their July 1 changes.Mortgage lenders say they've heard nothing from the three bureaus and are in the dark about the possible ramifications.There is also a maximum tax credit that can be earned.To electronically send non-TANF WOTC forms and support documentation such as your address, drivers license number, rehabilitation letters and/or military documentation you must scan the document, reference the person it pertains to and email it to: [email protected].A study by credit scoring developer Vantage Score Solutions, which was created by the three credit bureaus, estimated that 8 percent of consumers would see an average score increase of 10 points on its most widely used scoring model if all civil judgments and tax liens were removed from credit reports.Stevens said 8 percent and 10 points may sound small, but in the mortgage business they equate to significant numbers of applicants. Clemans, executive director of the National Consumer Reporting Association, a group that represents companies that provide credit reports for mortgage lenders, said homebuyers "who are on the edge" — they need a score increase to get approved for a loan or obtain a better interest rate — "may be of higher risk than (lenders) are aware after this data is removed."Tim Coyle, senior director of financial services and real estate for Lexis Nexis Risk Solutions, which sells creditors data on public records including judgments and tax liens, said that an internal study by his firm found that borrowers who have a judgment or a tax lien are 5.5 times more likely to end up in serious default or foreclosure compared with borrowers who don't have such items in their files.
Public records sources also will need to be updated on a timely basis to be eligible for inclusion in credit files.On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) that extends the Work Opportunity Tax Credit (WOTC) retroactively for hires from December 31, 2014 to December 31, 2019.