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You -- mortgage lender to get approved for alone they play with the numbers on your credit score and work their magic to improve it and close.
Sounds like -- sweet deal but not so fast.
-- was weekly advice is John Alzheimer the president of consumer education for credit dot com John great to see you.
-- -- Gerri thank you for having her right how mean what this rapid re scoring is what is it and what's wrong with it.
Well first stop of the term raptor re scoring is completely and this number this has nothing to do it rapidly re scoring any -- What this says is a mortgage lenders having the ability to modify information on your credit report -- very very fast -- or two or three days.
Which allows them to -- Reid poll all the credit reports and hopefully get new school worse -- a high enough to allow them to buffalo only imagine it is just like flying on your on your mortgage application where people you know said they made a certain amount of money it turned out that wasn't true.
And it if it isn't quite that egregious it's close but it's not quite -- -- essentially what's happening here remember.
The mortgage brokers have zero skin in the game this is not their money -- it's going -- -- someone else's money right very job.
And it's really blame them their jobs to get that three -- -- goes score high enough so that it's just about the memorable acquire -- -- Fannie Mae Freddie Mac or whatever lender.
It's gonna -- alone so that they can get the -- balked at the -- that applicant out the door and get the commission in their pocket.
How -- do -- and 4872.
Hours at thousands saying people spend years I had to get higher credit scores.
Odd that method to the magic here how to how to how it happens.
They actually subscribe and pay a fee to use certain score optimization services.
That purport to understand how -- -- works.
And -- actually look -- Gerri Willis this credit report and say hey watch.
Jerry if you pay -- off move a balance here dispute best we think we can juice fifteen or twenty more Michael points out of the score.
And get the loan book before your score goes back to where I want before this is putting lipstick on a dog Gerri it's still -- dog it.
Still to one point what can -- -- it with twenty points I mean what is that gonna do for me.
Can I mean if I didn't score a good score is 800.
So twenty -- -- That's exactly right but in the world mortgage lending you can still get a -- -- scores as low as 620.
So -- you're at 61020.
Points is extremely meaningful if you're getting approved that.
7% but you can get 6% -- -- -- twenty points higher it's meaningful so this is actually being.
Position that's a service to the buyer.
But the reality is is this is more the service from a mortgage -- -- -- they're commission and it.
I don't like yeah yeah oh yeah I think in the maybe I can get that loan I really wanted it and to when he points you know how many of these.
Reports are accurate not meant what ought had to hit here is the deal then the reality is that's.
Very takes heat for this service so somebody somewhere it's been paying.
So supposedly -- a credit report I mean how how crazy is that credit report should be accurate in the first place but now someone it's paying somebody.
Took -- -- -- for them what I'm I'm not saying that we shouldn't correcting credit -- reports that's not what I'm saying what I am saying is best if I am truly a fight those 600.
But someone has figured out a way to make it look like -- -- 640 for a couple of months then that's ripping off -- -- plain and simple.
Plain and simple and ultimately -- might be getting into a -- that I really can't afford right.
That's exactly right this doesn't it'll under the bar -- why saddle somebody.
Who has -- credit management skills mature 300000 dollars mortgage debt that they may not be able -- twelve months.
That the -- -- perhaps they're commission are long gone they're not gonna help you when that the mortgage adjusts.
Or you lose your job.
This is this is this is nasty this is one of the cause of the mortgage meltdown that has long completely under the radar and I I give you kudos for calling in now.
Well don't tell me OK so I don't want my mortgage broker what are they gonna call this service they're not gonna say rapid re scoring where they gonna effect.
No that's what they're calling it -- -- called rapid update.
Or rapid -- sort of -- all the same thing it's all the same thing getting stuff on your credit report changed and much faster format -- the thirty days that most consumers have to wait before things are updated.
Just so they can get a loan -- Before the closing -- I thought this was part of mortgage meltdown right this is part of what -- Right and I -- played that this is apt to look this isn't the primary cause this is absolutely want to be.
It's not even a secondary probably this is definitely a tertiary cause of the mortgage -- that and nobody is talking about it John thanks for telling us about it we really appreciate it.
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