Credit Repair

Written By: John Hoxsey
Certified 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.