Rapid Rescore Costs
What is Rapid Rescore?
A Rapid Rescore of a credit report is when a client provides documentation about erroneous information on their credit report…. And their Loan Officer submits these items to the credit bureaus to be updated. The loan officer doesn’t go directly like a consumer would. The loan officer will go through a 3rd party company that they use to pull credit. Examples are: Credco, Factual Data, ect…..
The Rapid Rescore process takes 3 – 5 business days. It has been my experience that these rescores are usually done in 2 – 3 days. The 3rd party companies I have used in the past have all been pretty quick about turn times.
How much does Rapid Rescore cost?
Rapid Rescore costs the loan officer(or, rather the lender who is being billed for credit pulls) about $35 per trade line per bureau.
So, if you need to correct 2 items on all 3 bureaus(Equifax, Experien, Transunion) then that is $35 X 6 = $210
Now, here is the good part!!!!
Of these 3rd party companies that I have used in the past…… Every one that I have ever discussed Rapid Rescore with has informed me that it is ILLEGAL to pass along the cost of the Rescore to the client. That’s right….. I said ILLEGAL!!!
Technically it is a violation of the FCRA (Fair Credit Reporting Act)
HUD defines this service as something that generates an ‘Unearned Fee’. Unearned Fees are not allowed per RESPA.
So…. Who pays for it? The lender does. It is simply a cost of doing business.
Will you be asked to pay for this from an unscrupulous or ignorant lender? Sure you will. But ignorance is no excuse for breaking the law. And this law has teeth. As an Act of Congress, lenders can be charged: Any person or persons who violate the provisions of this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both.
Here is an opinion from Joyce Pollison, director of legal and regulatory compliance for Lenders Compliance Group http://nationalmortgageprofessional.com/blog/charging-consumer-rapid-rescore
I don’t think it is worth it to cheat the system. And I wouldn’t work with a lender who cheats either.
Do yourself a favor and read the law…. Know your rights. And if you have any questions about this article…. Contact The DallasLoanGuy, Tom Burris.
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!
Your Texas FHA Expert and Dallas Mortgage Expert.