Q. In tape three of the Top Producer course, it says you cannot give a borrower their credit report. First, specifically what law/regulation states this? Second, why can’t we give them their report and companies like “Consumer Credit Counseling” can? My argument is if I’m trying to repair someone’s credit it stands to reason they need the report to make the corrections.
Q. I have a person who has charge offs on his credit report from 3 years ago. The accounts are showing that he still owes the money but it also clearly states that the accounts are charged off. How do charge off's work? Do the actually get charged off and still show as outstanding money due? How do they affect getting an FHA loan? He has no lates on his other accounts within the last 6 months.
Q. we run credit through a lender's LP/DU or through emagic or through our own credit provider and then we have to send the loan to a lender that won't accept the credit and must run their own. How are we affecting the credit score? How many times can credit be run in a certain time frame?
Q. Would you suggest having an expert and specialist on credit repair offer his services in your office?? I had an offer from someone who I have met to offer this kind of service in my office in exchange for referrals. I am curious to know your opinion on this matter?
Q. I took your advice and went to above link. Take a look at pages 35-44. Specifically, page 42 section (g) Disclosure of Credit Scores By Certain Mortgage Lenders. This talks about what we must disclose if a credit score is used to lend. Nevertheless, page 44 Paragraph (F) (ii) states that we cannot be held liable for the content on the information provided by the reporting agency. I did scan the entire 80+ pages and could not find any definitive verbiage that forbids “users” from giving the consumer their report. Further, there are many instances where it could be interpreted that the credit report should be given to the consumer.
But forget all that legal garbage. I sincerely want to understand how giving a client their credit report could possible bring harm upon them. I did read in the regulation that the Reporting Agency is required to have a trained employee available to explain the report. With that information this is how I see it…please correct me if I’m completely wrong.
I can give any client their credit report so long as I don’t explain it to them and have them sign a disclosure that the individuals that provided me the report have trained staff members that can help them. The law even states that we must give them contact numbers on who to call if we deny them financing.
Like I said before, I’m simply trying to understand the law vs. fight it.
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