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The Credit Doctor - January 2008

The fees are being added to the cost of the mortgage in order to handle the elevated risks involved in mortgage lending.

  • If the borrower's credit score is less than 620, a new 2% fee will be imposed.
  • If the score is between 620 and 639, the fee is 1.75% 
  • If the score is between 640 and 659, the fee is 1.25% 
  • If the score is between 660 and 679, the fee is .75%

The fees can be significant, $2,000 for a $100,000 mortgage of a borrower with a FICO score of less than 620. Lenders will need to take the new fee structure into consideration when pricing mortgage rates and fees for prospective customers.

A much more consultative sales approach must be taken to ensure that your customer's credit report has been thoroughly reviewed. Now is the time to consider utilizing United One Resources Expedited Dispute and Rapid Rescore Products. It is estimated that over 80% of all credit reports contain inaccurate information. The inaccurate information may have a negative impact on your borrowers FICO score. As you can see, FICO scores are increasingly important in the mortgage arena. A thorough review of your client's credit is a must.
 
I can personally assist you in closing more loans by providing proven methods in getting higher credit scores. We have done thousands of rapid re-scores and would be happy to suggest additional ways to get your desired results. Please call Mike McNamara at 410-715-5491 or via email at mmcnamara@unitedoneresources.com to schedule a credit scoring seminar or to discuss your title & settlement needs.

Posted by United One Team Member on 1/8/2008 5:09:52 PM EST

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