Credit Scores - Arbitrary and Unfair

Recent changes in government policy have required major changes in how mortgage insurance is governed in Canada, with restrictive policies pertaining the minimum Beacon Score acceptable by a mortgage insurer for borrower to obtain an insured mortgage.

I have a number of problems with the new federal policy changes for mortgage insurance, but my biggest concerns is with the Harper government now deciding to make hard and fast rules on subjects previously open to discretion on the part of the insurance companies and the lenders.

To me it doesn't matter if the hard number for a Beacon score is set at 620, 580 or even 680. What matters is that the government has given over control of the mortgage insurance industry and insured lending to private companies, Equifax and TransUnion, that are only accountable to their own shareholders.

Credit Scores are an arbitrary and unfair tool to be used to determine eligibility for mortgage insurance, and therefore for prime mortgage loans.

I have many problems with these unaccountable private agencies who have godlike powers already, without seeing them gain even more influence in the credit granting marketplace.
One of my complaints is that a person's single largest debt, a mortgage, is generally NOT reported to the credit bureau, which means that the Credit Score is based on how a person deals with a minority of their personal debts - indeed even a perfect mortgage payment record is not referred to at all.

In fact, a person can have a flawless mortgage record and haveCredit Score at all, unless they have trade credit, ie: credit cards or installment loans of other kinds.

Errors or misfilings on consumer reports are also not corrected except by a persistent and determined consumer who can prove that they are NOT guilty of an offense. There is no presumption of innocence here... even any collection effort, justified or not, is a black mark on a person's credit score without reference to the merits of the collection case at all.

Even if someone wins relief from a collection, the collection report still is a negative on the Credit Bureau report reducing a consumer's credit score.

And the federal government has now given these organizations an absolute power to destroy an individual's ability to borrow money for a prime mortgage.