What is Rapid Rescore?

A Rapid Rescore of a credit report is when a client provides documentation about erroneous information on their credit report…. And their Loan Officer submits these items to the credit bureaus to be updated. The loan officer doesn’t go directly like a consumer would. The loan officer will go through a 3rd party company that they use to pull credit. Examples are: Credco, Factual Data, ect…..
The Rapid Rescore process takes 3 – 5 business days. It has been my experience that these rescores are usually done in 2 – 3 days. The 3rd party companies I have used in the past have all been pretty quick about turn times.

How much does Rapid Rescore cost?

Rapid Rescore costs the loan officer(or, rather the lender who is being billed for credit pulls) about $35 per trade line per bureau.
So, if you need to correct 2 items on all 3 bureaus(Equifax, Experien, Transunion) then that is $35 X 6 = $210

Now, here is the good part!!!!

Of these 3rd party companies that I have used in the past…… Every one that I have ever discussed Rapid Rescore with has informed me that it is ILLEGAL to pass along the cost of the Rescore to the client. That’s right….. I said ILLEGAL!!!
Technically it is a violation of RESPA (Real Estate Settlement Procedures Act).
HUD defines this service as something that generates an ‘Unearned Fee’. Unearned Fees are not allowed per RESPA.

So…. Who pays for it? The lender does. It is simply a cost of doing business.

Will you be asked to pay for this from an unscrupulous or ignorant lender? Sure you will. But ignorance is no excuse for breaking the law. And this law has teeth. As an Act of Congress, lenders can be charged: Any person or persons who violate the provisions of this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both.

I don’t think it is worth it to cheat the system. And I wouldn’t work with a lender who cheats either.
Do yourself a favor and read the law…. Know your rights. And if you have any questions about this article…. Contact The DallasLoanGuy, Tom Burris.

Tom Burris
DallasLoanGuy.com
NMLS# 335055
Dallas, TX

214-763-4629 cell/text/nights/weekends

http://www.dallasloanguy.com/
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

A LOT has changed in the world of Real Estate and Mortgages over the last few years. 

That means that a Real Estate transaction today will be a LOT different than the transaction Cousin Eddie did 3 or 4 years ago.  While I suggest that my clients listen to their friends/family for referrals to Real Estate & Mortgage Professionals….. I do have to warn you that the conflicting advice you get from them, vs your Real Estate/Mortgage Professional, might just differ quite a bit.

Who do you trust?

Good question!!!

After you have picked a Real Estate or Mortgage professional, you should already be pretty comfortable with that person.
That is not to say that your Professional Representative will not offer advice or counsel that is in conflict with what Mom said or Cousin Eddie experienced when he did his loan back in 2004.

I recently was involved in a transaction that went sour when the seller backed out.  The borrower didn’t understand….  They had an accepted contract…..  Why couldn’t they buy the home?!?!?!
The Buyer’s Agent answer was:  “The seller is in foreclosure and the bank is now involved”.  “Also, the seller has become dis-engaged with their own Seller Agent”.
That didn’t sit well with the buyer…..  And the Buyer Agent was fired.
Come to find out…..  ‘Mom’ worked in the foreclosure dept of a large bank and thought she knew a lot about Real Estate transactions in today’s market…..  She didn’t!!!   She told my client that the realtor didn’t know what they were doing.

So the question is:  Who can you trust? Answer: It has to be yourself.  As those in your sphere of influence might have very different experiences because of ‘when’ they did their loan. Do you think that you can trust their Advice to relate to your specific deal?

Whether it be Real Estate advice or Mortgage Advice, you need to use common sense and try to resolve conflicting information between all parties. Pointing fingers will not solve the problem.  I have talked to a lot of Mom’s and Cousin Eddies over the years.  This seems to alleviate many of the conflicts.

Got questions? Need Mortgage Advice? Call The DallasLoanGuy for an honest no obligation discussion about Mortgage Loans Today!!

Tom Burris
DallasLoanGuy.com
NMLS# 335055
Dallas, TX

214-763-4629 cell/text/nights/weekends

http://www.dallasloanguy.com/
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

HUD Guideline update regarding Disputed Credit Accounts. Some accounts in dispute do NOT need to be resolved. Small amounts or very old accounts to be specific. See your loan officer for details.

While thankful for the change in guidelines…. There are still people who will need to remove credit disputes from the credit reports before they can get a loan.

Here is how it can be one.

1. Dispute the dispute. Yes, it sounds silly, but it is effective. Results in 30 – 45 days.

2. Get some documentation from the creditor documenting the dispute as ‘resolved’. Results in 30 – 45 days.

3. Have your loan officer Rapid Rescore’ your credit report. Some documentation may apply. Results in 3 – 5 days.

However you slice it, if the disputed credit acount is recent or has a balance, FHA requires that dispute to be resolved.

Tom Burris
DallasLoanGuy.com
Dallas, TX

http://www.dallasloanguy.com/

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

Mortgage triggers result in the collections that show up when a credit report is re-pulled a few days prior to closing.

Collection agencies or third party debt buyers can purchase a mortgage trigger list just as a lender might buy mortgage leads.
Here is how it works. Sometimes collections agencies do not report derogatory trade lines until a borrower has applied for a mortgage. They buy a list of recent mortgage applicants and match it against their debtor list.
The collection agency`s hope is that the borrower will contact them immediately with full payment for the collection after it “pops up”. They know they have a motivated debtor. It is not a nice trick, but it works too often.
The dilemma is even if the client pays there may be a chance that the credit score could still be reduced. The reason is because it could become a paid collection with a recent date of last activity verses an older unpaid collection with less of a credit score deduction. 

Here is an option: When faced with this situation. Contract the creditor and request a proposed settlement agreement (prior to payment). The agreement should state in writing that they will remove or delete the trade line from the credit reporting agencies with a full or partial settlement and payment.
Always get it in writing and on their company letterhead.

Another Strategy: If the collection is required to be paid by the lender, then have it paid thru closing. No chance of the credit report being updated when the mortgage company makes that ‘Final Credit Pull’.
Most importantly!! Make sure your loan officer understands how all of this works. This is simple stuff, but I still hear stories about loan officers requiring a collection to be paid asap…. then the collection being updated by the time that final pull happens. And remember…. Not all lenders will require collections to be paid to qualify!!

Please feel free to download my FREE e-book titled ‘About Credit’. Learn more about how credit works.
Nothing to sign up for… just click below and it is yours.

Free E-Book About Credit <= free download.

Tom Burris
DallasLoanGuy.com
NMLS# 33505
Dallas, TX

214-763-4629 cell/text/nights/weekends

http://www.dallasloanguy.com/
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

Here is your Pre-Approval Checklist.

W-2s…. Paystubs…. Tax Returns?
What do you need?

See the above checklist and see…… And if you have questions, Call The DallasLoanGuy to go over your specific situation!!!!

Hey!!  Your Mortgage should be fun…. Contact the ‘Original’ Loan Guy from Texas and let’s get you through all of the issues and questions….

Tom Burris
DallasLoanGuy.com
NMLS# 33505
Dallas, TX

214-763-4629 cell/text/nights/weekends

http://www.dallasloanguy.com/
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

Look for more information from the DallasLoanGuy coming soon

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