Everyone is talking about buyer's or payer's credit score.  Does it make sense after all these years practice?

Don't you think that is a man-made standard? Why we have to be confined or tied up by an artifical set of man's criteria? Maybe it is the tyranny of status quo so called by M. Fredman.

As a civilized society, we do need some sort of standard. We, the human creators, have created some rules or grades to classify all the people into categories. Even in the modern societies, we still label people as those "slave" systems adopted by the Roman Empire. By some institutions, we are just a numbers, no longer a human being with our own brain and dignity. We are facing the same problems as those "backward" nations evolved from a traditional society into more modern one.

(NOTE: After WWII, we used to play the arts of language arrogance to call them "developing countries" instead of "backard countries" and now, we have invented an improved formula to call them an "emerging county." Same old shits in essence, but more comfortable to meet those nationals' self-esteem, right?)

But do we periodly check into its validity or effectivity or efficiency? I doubt it.

The current economic downturn was partially created by the computer module set up by those Wall Street grading agencies. Nobody can argue with me those module is NOT working to perform its major function: to protect the financial firms or institutions from a deadly risk.

To the so-called "FICO" credit system, we created it to develop and survive a brand new "well-managed" profitable industry in the "service" sector in our modern economy. In the end, it come back to hunt us or make itself as a self-regulated or self-supportive monster as movie described an imagined war triggered by a super computer, to kill people at the end, at least to hurt some mis-fortunate to re-start ove again. Those financial institutions can base on FICO to refuse a loan approval to a decent people who just needs a little help in his difficult times, as those black kids used to be unfairly treated socially or educationally in the past as Dr. MLK claimed.  

Even the refusal of a loan is simply caused by a banker who has no intention to loan out money, for whatever reasoon they may have, just as right now.  They can always use a FICO score as a convenient excuse to treat people in need of a chance to get their feet up.   Recently, we saw reports claiming refinancing applications are up.  But did we see any report telling us how many those applications are APPROVED?   Few, if not none, as a professional loan broker disappointedly wrote in his article.  That's why I called it a "Fuck Score" to screw people up.

When a banker wants business, he doesn't care about FICO.  That is why we have so many subprime loans in which FICO is not even a marginal factor.  It was not a important factor for a banker to approve a subprime loan. If he intends not to make loan, what we see?  All kinds of tools handy for his execuses.  Among them, a FICO score is very common since it is legally safe to avoid any possible discrimination charge.  Even creditors can claim credit score is the major part of their risk maangement and everyone does that, is it fair or humane?   On the other hand, if that's so effective, realistic and reasonable to their financial safety, why now those SMART fat cats have to hands out to our government bailout money for their mistakes? Then, it tells us that there must be some other real core or key concerns in doing the financial business, not FICO.  

Why we can have a black president today? Some people answered it by "the inspiration of Dr. MLK." Really? Then, we do need a great spirit to inspire all of us to cultivate a more humane way to treat people in the field of "credit" as Dr. MLK did in the field of race.

I have a dream: someday no human being shall be treated as a score. No one is a number.

Why I have such a thought, please see the following emails I exchanged with others today:

** 1 **

Hi! John, Here I am again, I need your opinion on this brand new (so-called "not seasoned") note. How much do you think I can get it if I sell it now? I will forward the official copy of the land contract I got from county deed desk. Enclosed herewith the following info for your reference:

1. Original Selling Price:

2. Down Payment:

3. Original Note Balance:

4. Months / Years Financed: Interest Rate:
5. Monthly Payment:
6. Balloon? Yes Date: 03/01/2019 Amount:
7. Date of First Payment: 1/8/2009 Current Appraised Value:
8. Current Balance:
9. Owner Occupied? Yes
10. Underlying Balance: No, this is the only lien against the said property.
11. Credit of Payer:

X Excellent to me, judging from the 3 month experience before the house was sold.

Although I have his SSN number, TX driver License number, and permission to check his credit, I didn't do it. This Payor/ buyer negotiated with me for about 3 months. He gave me an impression that he honors his words. Say, he would call me one the day if he said he was going to call me, without all those disappointment from others who screamed out "this is my dream home and consider it sold. Reserve it for me for one day and I will give you my downpayment tomorrow" and never show up without a phone explanation. After all, he put so much toward the downpayment and he is working for a local company, about 5 miles away from his purchase. At the beginning, we were working on a 30 year amortization schedule that will commit him to make monthly payment of ****, plus property tax and home insurance. After we went out for dinner to celebrate our accomplishment, he mentioned that he intended to pay me $*** or more each month two or 3 months later after the purchase.

According to Texas laws, I have to give him an annual financing statement, I rerun it and come out next day a 15 year amortization that is to his benefit, much better than his idea of making $200-300 prepayment every month later. He appreciated my kindness for the better option, even I told him that he needed more time to re-think his decision that will increase his monthly payment of less than $*00, instead of paying me $*** which has higher interest with 30 year amortization schedule. The total payment will be about $**** every month, including property tax and insurance (currently with state farm). I don't want him to stretch himself too thin. He accepted the idea of switching after reading the numbers. That's why we have a 15 year amortization now.

After sold, he came to visit me with fruit and soft drinks and repaired the whole kitchen faucet plumbing system. I wanted to pay him for the labor, he responsed: "No, don't you know I know how to appreciate people? You help me to get into my dream home?"

Yes, a modern person seems to forgot "appreciation" due to the idea of social entitlement. That's why I always try to help people as a human being: the spiritual sense of achievement out of helping has more value than the material one.

He is an employee who doesn't have the luxury to take time out so that he used his credit card and fax to set up his utilities to the house as he told me. At least, he still owns a credit card; and that means he is credit worth to someone else. To me, I believe he is decent and honest. But you don't have to take my words (I really don't care much about FICO from my business experience until retirement as long as there is enough downpayment or vest interest put up by a buyer. Now so many people who have good credit walked away from their houses.) and just run his credit check if you like.

NOTE: As a human being, we have created so many things, including laws, regulations, concepts and categories, etc. Some things we created are bad enough to tied us up. Take a good look at the ABS grading system set up by those Wall Street grading agency. The computer module they used lead us into this economic downturn. Do they work? You tell me.

Tell you the truth, I am a human being who is not going to take all the man-made standard or systems for granted. I refuse to be a slave confined by a man-made rule, norm or custom. I am not going to judge people by other artificial pre-set criteria as a classified society set by our ancestors in history. For example, so-called "FICO" credit system is no better than the Wall Street grading agency's. I look at "FICO" score as "FU*K" score, an artificial standard but far from a natural and realistic stuff to give you the true reality. See, they can't prevent those credit-worthy people walk away from their home with "option" loan. Does it work by treating a human being as a "number"?

Why I am so negative about FICO? Don't say I have a poor credit score from those 3 agencies. I guarantee that my score has been "excellent" in the last 15 years. Even I was graded "poor" during my divorce and after, in 1989-93. Simply my hardship was incurred by a divorce, unemployment, and a home being foreclosed happen at the same time. Am I not the same person? I doubt it.

I have known the payer for only 3 months and obseve his words and deeds. No need to tell me he is a decent and wonderful natural person, I can sense it. Here, please check the website link to get those pictures: http://www.zillow.com/homedetails/

12. Property Type
X Single Family Res:( ***2128 sqft)
X Land (half acre:175'x 125' corner residential lot) with Improvements (utilities) electrical, water, phone, cable ready, trash.
13. X Deed of Trust N Mortgage X Land Contract X Contract for Deed
14. Title Policy: Yes (I hold the legal title until my loan is paid off; and my original title insurance is still effective.)
15. Property Description and Location / Comments: Residential *** home with ½ acre home cornor lot (175‘ X125‘). It is in a county property setting, just one block south of city limit of **** and ***** new police headquarter. In the past two years, the community refused to be annexed into ********* city for too much property taxes and high utility charges. The property is right on the fastest growth path between ***** and ******. The best possible zoning usage is prime residential. I can see the public sewage system is approaching right at the intersection, there is only septic tank in the property.

** 2 **

--- J @.com> wrote: 

From: .com>
Subject: [FWD: Mortgage Note Quote]
To: "E T" <e@yahoo.com>
Date: 9:55 AM


Hello Ed, how was your weekend?

I wanted to reach out to you this morning and see if you had any reaction to the quote i had sent over, if you had any questions, concerns, etc.

So please get back to me at your earliest convenience and let em know how things are going.

Awesome! thank you Ed.

JT
President

After I reply your email, I read this one email asking my other ntoe. Enclosed here for your reference.

ET P.S. I gave up the idea of convincing people to be realistic 5 years ago. As an individualist, I am NOT trying to change your idea or your own way to do business; and please do whatever you believe is right and comfortable. I will see if we can make a deal. If not, let it be. ET

--- On Wed, 1/21/09, ET <e@yahoo.com> wrote:

From: E T <e@yahoo.com>
Subject: Fw: Land contract
To: Date: Wednesday, January 21, 2009, 11:23 AM