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Unusual Mortgage Question...maybe?


SRussell
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Long story short, found a new home, closing in 6 weeks. Current mid score is 580, need 620 to get no doc, stated income loan (according to my mortgage broker). This is very necessary; I have a job and side business but can't use side business income, less than 2 years to show although business has been great.

Results from disputes come back in 2-3 weeks, paying off all outstanding debt before close, with the exception of two accounts. After disputing and receiving unsatisfactory VOD requests, an attorney is now representing me. He's found (confirmed) obvious FDCPA violations. I may file suit.

Questions: Would my attorney's involvement help with my loan - in showing the invalidity of some of the items on my CR? He's stated that he's helped clients in the past with similar issues acquire a mortgage by communicating with brokers and loan officers on his client's behalf.

Also, would a broker who works with CBC Innovis rapid rescore (Rapid Response specifically - http://www.cbcinnovis.com/cpage.php?p=2100) be recommended in my scenario? 620+ Fico would be guaranteed regardless of current dispute results if the disputed (violating) CA's were not taken into consideration.

I don't know how common - or unusual - my situation is. Any input would be appreciated.

Thanks.

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The only way that "rapid Rescore" would help you is if your attny is able to get the two accounts in question resolved before a week before closing.

With that proof that the accounts have been taken care of your broker can request a rapid rescore.

Remember that this is an issue that would have been reflected on your credit report sometime in the future (30-45 days) but because your broker is willing to pay the fee, the results are reflected much faster. My experience is that it takes 4-5 days. The reporting agencies say that it takes up to 10 days, but it has not taken that long when I have done it.

The attny imput is great in some cases, for instance when a judgment is on the report in error. Or when a home is listed as being in foreclosure when it was included in a BK.

Charles

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  • 2 weeks later...

In my experience the only thing that will be accepted for rapid rescoring (with CBC, NCO Credit, or First American CREDCO) is a letter from the creditor themselves. Final HUD-1's, court documents (unless it's correcting something the court said), credit reports from the CRA's themselves, or indirect proof of satisfaction (like a cancelled check showing payment for something that is showing on credit), or statements don't work out.

jimdiamond, never heard of 620 & no doc? Might want to think about expanding your product line.

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620 & no doc is real, but so are the rediculous interest rates that go along with that type of loan. I could close on the house, but I'm gonna have to pass.

jimdiamond, brokers are like used car salemen. Some are worthless sleeze, and some are ethical. My guy is the 2nd of the two.

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A comment on brokers vs direct lenders.

In every business I know of other than the financial industry - the closer you get to the source the better the price and/or program.

It is simply not true in the mortgage industry. The rates quoted from a retail banker like Wells Fargo or CountryWide or etc are not going to be less than a mortgage broker's rates. If that was the case the brokers would not use them as lenders. There are so many options that brokers would just go to someone else. The banks that brokers use have wholesale rates (and sometimes programs) that are much different than their retail division.

Also, a direct banker is limited to the programs that they have, so they have to make their client fit the programs that they have. A broker finds a program that fits the client's needs.

Finally training & education. In many states Loan officers that work for brokers have to go to an pre-licensing class and then take continuing education classes. The banking industry is set up with the federal government with an exception for that licensing requirement.

It is sad to hear of bad apples in any business, especially ours. Any time you are treated unethically you should report that person to the regulatory agency and they will be out of the business.

Charles

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Mr. Clark, your input is greatly appreciated.

I respect my broker; his wife and I have been freinds for years (before she married him), and our discussions have been to the point and without all the slick sales talk. Your comments confirmed our conversations.

On a side note, Although I won't close on this house (condo), the development is still ongoing. Only 60 of the 120 units have been built. So, I will convert my downpayment for the existing condo into a downpayment for one that has yet to be built. (I spoke with the developer and he's OK with this.) This will lock my price, and gives me an additional year to fix my credit. Another bonus, is that I expect to close with at least $15,000 to $20,000 equity because I'm buying preconstruction.

So, things happen for a reason - so I've been told.

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