Maria, a first-time homebuyer in Vancouver, BC, is applying for a mortgage. Her credit report shows an R9 rating on a recent cell phone bill, while all other trade lines are R1. She earns $65,000 annually as a salaried employee. How should a mortgage agent primarily interpret the R9 rating?

Question: Maria, a first-time homebuyer in Vancouver, BC, is applying for a mortgage. Her credit report shows an R9 rating on a recent cell phone bill, while all other trade lines are R1. She earns $65,000 annually as a salaried employee. How should a mortgage agent primarily interpret the R9 rating?

Answer options: ✅ It indicates a serious delinquency, such as a write-off or collection, warranting further investigation into the cause and potential impact on her mortgage application.

• It represents a minor payment delinquency (90+ days past due) that can be easily overlooked by lenders if other credit is strong.
• It signifies an account paid off in full and closed, which is a positive indicator for her creditworthiness.
• It means the account has been inactive for an extended period, which lenders generally disregard.

Correct answer: It indicates a serious delinquency, such as a write-off or collection, warranting further investigation into the cause and potential impact on her mortgage application.

Explanation: An R9 rating indicates a serious delinquency, such as a bad debt, write-off, or collection, as per standard credit reporting codes used by agencies like Equifax and TransUnion. This necessitates immediate attention and clarification for a mortgage application.