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Federal Tax Liens Out Of Credit Reports And Related FICO Scores

May 04, 2017 Due Diligence, Title Related Topics

Equifax, Experian and TransUnion , the three major national credit reporting agencies, will implement new standards for their data collection pertaining to public record data, notably regarding federal tax liens and civil judgments. This implementation is set for July 1, 2017.

In general, the agencies will no longer collect and utilize public record data unless specific minimum information is present, including social security numbers and date of birth. Federal tax liens and many judgment liens do not typically have this information on the lien filing, so the effect will be to eliminate most federal tax lien and judgment lien information from future credit reports issued by these agencies, and this data will not typically be factored into the calculation of related FICO credit scores.

Federal tax lien and judgment information can still be garnered from other sources, and now will have to be. The elimination of this reporting creates possible content risks to lenders who formerly relied on these reports to assess credit and equity risks in asset based loans.

Public Record Research Companies can fill this gap, and have, for a long time. If you need federal tax lien and civil judgment information, contact your public records service provider to get it.

Do the coming changes to credit score calculations necessitate changes to your due diligence processes? Contact us today to schedule a consultation with one of our public records specialists and assure you and your firm get the timely and accurate federal tax lien reporting you require.


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