How does a mortgage modification affect the borrower's FICO score?
FICO® credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower's FICO score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person's overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer's credit report could cause the consumer's FICO score to decrease or it could have little to no impact on the score.
The Score That Matters®
The FICO Score is the standard credit score in the US, used in more than 90% of lending decisions.