Credit Bureaus increase fees to $100 for a joint report!

By
Mortgage and Lending with Christensen Financial Mortgage 385907

Well not really, at least

not yet

but, while we're on the subject;

CNNMoney reports;

CFPB to supervise credit reporting agencies: credit reporting agencies will soon be subject to federal oversight for the first time

September 30 (remember this date)

Under the new rule that takes effect September 30, the CFPB will be able to monitor business practices, conduct on site examinations, and write new rules.

"Write new rules"

let that sink in for a few moments

you'd think, on the surface, that we would all be jumping up and down, doing a little back slapping, issuing a few, "well it's about time."

Anyone in the real estate industry knows that a credit bureau can show inaccuracies on almost every transaction. I mean it seems like they never get it right, and there's absolutely little to nothing you can do about it.

"Write new rules"

Why it's about time somebody steps in and puts them in their place.

be careful here now.

try out this quote;

Supervising this market will help insure that it works properly for consumers, lenders, and the wider economy."

So says CFPB director Richard Cordray.

Question?

Will it???

checking the regulatory track record to date might make one think that they could make it worse, and I believe the problem will lie in their ability to

"Write new rules"

scares me a bit, how about you?

One result I am convinced of is that when all is said and done, sooner probably rather than later, that the cost of the credit bureaus will increase and the rational/blame will be on increased regulation.

So what do you think?

a c-note for a joint credit report?

sounds about right to me

 

Comments (15)

Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Good morning Jay. SO far everytime our beloved Government has "fixed" anything it has ended up way worse so I would expect things to go very poorly. You are right though, first instinct is to clap.

Jul 16, 2012 09:54 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Scares me a LOT.

Jul 16, 2012 09:56 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Randy,

it's just so unpredictable as to where they will head with this. stay tuned

Lenn,

me too!

thanks,

jay

Jul 16, 2012 10:01 PM
Lou Zandy
WeLoveMarcoIsland.com - Marco Island, FL

Oh Boy, another opportunity for big brother to expand it's reach....   Let's face it... When was the last time government made anything more efficient ??  or mandated any changes which allowed private enterprise to work more efficient ?   Fix the post office as a starter ;-)

 

Lou 

Jul 16, 2012 10:05 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jay, on the surface it sounds good, but deep down when the government gets involved it will turn into a bureaucratic nightmare. A c-note may be on the low side.

Jul 16, 2012 10:45 PM
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Well, if there are inaccuracies on the reports, then something is very, very wrong.  Something needs to be done.  I doubt those credit reporting agencies would fix it by themselves...  How much is a joint report now, coupled with a quick rewrite? 

Jul 16, 2012 11:18 PM
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
SVP of Mortgage Lending, Marin County

As an industry, we will find a way to help the customer despite the actions of this new agency.  In the end, the new rules and regulations all end up costing the consumer.  They never learn.  Example:

Appraisal Cost

Before HVCC:  $325

After HVCC:  $525

Case closed.

Jul 16, 2012 11:46 PM
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

Always a good idea to generate and review your own annual free credit report.  This is a free service, provided by all 3 credit reporting bureaus.

Jul 17, 2012 12:06 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I believe in free enterprise, capitalism and entrepreneurship and all the rest of it....but put a reasonable value on things...Over charging for anything doesnt work for me

Jul 17, 2012 12:33 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Lou,

and it's a new frontier. who knows what direction they'll head in.

Michael

you could be right on the cost. i'm just guessing.

Gary,

there's always inaccuraces on the credit reports and there is no quick rewrite only a slow costly correction, but i doubt this will help

Rob,

i'm right there with you. our appraisals are not quite that high, usually about $450.

Anthony,

I agree, but that's not the same report mortgage lenders use.

Rchie,

me neither, but i'm betting that one of the results of this oversight will be higher costs.

thanks

everyone,

jay 

 

Jul 17, 2012 01:23 AM
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

It's about time that the credit bureaus were more strictly scrutinized and controlled. It's a system that we have little control over and it's being used for more than just granting credit - as in job applications for example.  Thanks to govt. regulation you get a FREE credit report every year.  Now they just better play catch up and start monitoring the baloney of credit scores.

Jul 17, 2012 02:57 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

It is scary when you think about they can write new rules. What new rules? Some government intervention is good, such as consumer protection, but government generally makes things more complicated and costly than they have to be.

Jul 17, 2012 04:36 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Elizabeth,

back when i first started in the mortgage business with Commonwealth Mortgage Co. there were no credit scores. Underwriters evaluated the credit profile and found it to be acceptable or not.

If the regulation of appraisers/appraisals is any indication the main accomplishment, despite intentions, was an unnecessary increase in cost to the consumer and in many cases a decrease in quality.

just one man's opinion.

Pamela,

What new rules? is a great question and a concern. and at what cost?

stay tuned.

thanks,

jay

Jul 17, 2012 05:27 AM
Anonymous
Alan Bercovitz

Overall I am very much against the increased regulatory burden in the mortgage business.  But something needs to be done to make it easier for the consumer to fix errors on their credit report.  I believe the current regulation is that the credit company has 30 days to investigate the consumer's complaint and must remove the derogatory item if they can't prove it legitimate within the 30 days.  But who does the consumer call if the 30 day period is exceeded, as it often is.

And why should the consumer or the mortgage company have the burden of paying rapid rescore fees to correct errors if they need them done in a timely manner.  Why doesn't the company that made the credit reporting error pay for those fees? 

I've had customers such as the one who paid off a mortgage in June, get reported for late mortgage payments in July, August, and September.  The 30 days comes and goes and they have nowhere to turn.sl

Jul 18, 2012 01:02 AM
#14
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

the bureau does not prove it's legitimate, the customer must prove it's not.

the FTC, i believe is the primary enforcement group, but there are others depending on the problem, now we can add the CFPB, that doesn't mean that they will solve the problems or even that they know how, only that they will make

"new rules" 

who pays the cost...i'm with you on that one, but beware one way or another the consumer will pay.

thanks,

jay

Jul 18, 2012 06:27 AM