Credit Repair
Written By: John HoxseyCertified Master Loan Processor (CMLP)
It seems like lender guidelines change on a daily basis. Loans in process can either fall out or take terrible hits to the pricing with little or no notice. Be prepared to wow your brokers with a solution that will save the deal and keep valuable money in their pockets.
Most credit companies have a solution that will increase the borrower’s credit score. So if you are processing a loan that is sitting on the boarder-line of a credit score hit, or the lender decides to cut off business below a certain FICO, you can be prepared to put that injured file on the stretcher.
Most of my brokers use Credit Plus. Credit Plus has a great tool called Rapid Rescore. It cost very little money and the impact to the score is immediate.
I have a loan in my pipeline right now that was on its way to the table when the lender decided to cut off all loans below a 580 mid score. I was expecting the lender to call me and to confirm the closing date I requested but, instead they informed me the loan was dead because of the new guideline. I informed the lender that I would like to run a Rapid Rescore and requested that they not kill the file just yet.
I ran the findings and the borrower needed to come up with $200 to pay the ratio of one of their cards down to get a score increase of 45 points. The borrower paid the card, sent in the proof, and in less than 5 days I had my rescore complete and the loan back on the board.
I know that the loan officer is grateful that I did not just let the loan die. Go the extra mile and you will make clients for life.
Remember - Your reputation is your business.
Happy Processing!!!
About the Writer. As one of NAMP's volunteer writers, John Hoxsey is currently a NAMP member in good standing and is a NAMP Certified Master Loan Processor (CMLP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.
posted by Editor in Chief at 12:11 PM
2 Comments:
what do you mean you ran the findings? With my credit company they don't guarantee anything. They let you mess around with it so you can see beforehand that it will raise the score?? That is huge! Please let me know if this is true!
becky(at)amsutah(dot)com
Hello :)
I had the very same thing happen to me as well. I wish we used Credit Plus, I have worked with them in the past. We are not on Equifax Mortgage Solutions and that seems to be cheaper as well. The loan officer gave up, the borrower as well, but the loan was saved with the rescoring and we closed the following week. Definately NEVER give up, there are other ways to help in this market of every change.
Tanya Goodroad :)
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