Sanctity Of Credit Reports?
I am in the process of buying an investment property. In the process, my realtor introduced me to a broker. As usual, the broker pulled my credit report but decided that my scores were too low to qualify for the kind of financing I was looking for (95% - 100%). I went with another broker who was able to get the required financing on acceptable terms.
The other day, my Realtor and I were having a conversation and he asks me that why was my credit score so low (He quoted the actual number) and that the broker he recommended had told him that I had too many inquiries on my report. I stated that there were errors on my report and that I did not agree that there were so many inquiries because I had not made any requests for credit in 9 months till now. Anyways, he goes on to say that what I am telling him does not reflect what the broker is telling him. (I felt he was trying to imply that I was lying but I admit that I might just be reading it wrong).
After the conversation, I started thinking whether the broker should be sharing the information in my credit file with the realtor. I realize that the realtor recommended me, but does that mean he should be privy to the contents in my credit report? Also, the broker I did not go with is asking that I reimburse him for the costs of the report and expenses incurred in shopping the loan. I have no problem paying for the report, but doesn't that mean that it is my property and should only be shared with my permission?
Thoughts and comments would be well appreciated.
Thanks,
JS.
P.S. Maybe this is a post for the legal forum.
I don't know what CITY/STATE you're in but that loan officer should have asked for creedit report and loan application fee upfront. He shouldn't ask you to pay for any work that he's done if he didn't ask you for the fees upfront. Plus, as a loan officer, it is up to the loan officer to pursue a loan. It was up to the loan officer to either turn you down or try to obtain a loan for you. Part of being a loan officer means, we don't get paid until closing. If you did not have a closing, the loan officer should have just simply thought of this as a lost cause and not try to pursue any kind of compensation from you. DON'T pay for anything unless you have agreed to pay something upfront----at the time you and the loan officer started to communicate. DO NOT pay him/her for the credit report unless you want to.
In terms of the loan officer discussing the credit rpt with the real estate agent......the LO should not have discussed anything with anyone per the FAIR CREDIT REPORTING ACT. THe LO could look at your report but he is not allowed to even show it to you. There is a wave of change in the mortgage industry to change credit repoting so that the customer is allowed to see their own reports. The only way you are allowed to see anytyhing on your own report is to apply to the credit bureaus directly for a copy. There's a lot of reasons why the Gov't doesn't want LO's to share the credit report with the customers but I cant' get into all that in this short message.
ANYHOW, I hate bad LO's because they bring down the reputation of the industry. Going back to that LO, he shouldn't have shopped around for your loan if he knew upfront that you would not qualify. I sincerely believe that the LO was not experienced. First, he would have known upfront if you were able to fit into a loan program. Second, if the LO wasted his tiime, then it's due to his/her own inexperience.
One more thing, your credit score can't be brought down too much because of the inquiries. I believe there is something else on your report. Forget about getting that report from the LO. Instead, get your own FREE copy from the credit bureaus. Plus, if you have anything that you need to dispute, you can't dispute it unless you have a copy of the credit report that was obtained directly from the credit bureaus.
Here is my 2 cents and I hope that this helps.
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On 2004-12-29 11:09, gte843k wrote:
I don't know what CITY/STATE you're in but that loan officer should have asked for creedit report and loan application fee upfront.
This depends on city and state. This is illegal to ask for in North Carolina you are not allowed to collect any fee's other then apprasial up front
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In terms of the loan officer discussing the credit rpt with the real estate agent......the LO should not have discussed anything with anyone per the FAIR CREDIT REPORTING ACT.
This is illegal to disclose to anyone but the owner of the credit report per 15 U.S.C. § 1681 § 620 The Fair Credit Reporting Act
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THe LO could look at your report but he is not allowed to even show it to you. There is a wave of change in the mortgage industry to change credit repoting so that the customer is allowed to see their own reports.
That is old you can show them there report in fact you can give them a copy its not illegal. I was told that when I entered the industry in the 90's and found out that it was not even true then.
The only way you are allowed to see anytyhing on your own report is to apply to the credit bureaus directly for a copy. There's a lot of reasons why the Gov't doesn't want LO's to share the credit report with the customers but I cant' get into all that in this short message.
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One more thing, your credit score can't be brought down too much because of the inquiries.
This is both true and false, Its true that numerous credit reports by mortgage companies in 30 days does not hurt your credit because the credit agencies take into account that on homes/cars and other large purchases you are going to shop the rate. So if they are all within 30 days you are okay. But its also false It can be negativly affected if you have numerous inquires from credit card/charge card/store card/gas card etc companies.
Also here is another reason your score can drop fast. Do you have credit cards? Divide the balance on the card by the credit limit if the number is over .80 it is kiling your credit score. Any revolving debt that is over 80% of the high credit affects your credit score more then anything else.
Just sharing my knowledge
Forgot to even mention the FACT act