Why credit score is so important

[spidey07]

Jealous? roflcopter. More ME ME ME ME...

So when are you going to give the money back to the taxpayers? Do you enjoy the fact that your wife's pension is going to bankrupt your state? Common, we know you do.

I'll bite. How do government mandates force you to make a late payment, force you to borrow money to buy a house, force credit agencies to drop your score for late payments, or force lenders to charge you more?

Broker made it very clear that these fees were mandated by the government. Exact words out of her mouth were "making responsible people pay for the fuck ups".

 

[dmcowen674]

Personally, I hope it hits him too. Asshole constantly brags about his wife's high salary, she's a government worker, but then bashes "liberals" and "big government". He's your typical Repuglican "ME ME ME ME ME" jerkoff.

This

Normally he would be thrilled and $10k should be nothing to him, why all of a sudden is it a big deal?

 

[LegendKiller]

Broker made it very clear that these fees were mandated by the government. Exact words out of her mouth were "making responsible people pay for the fuck ups".

We aren't getting the full story (aka, you're full of shit, as always).

 

[HendrixFan]

Broker made it very clear that these fees were mandated by the government. Exact words out of her mouth were "making responsible people pay for the fuck ups".

Just what fees are these? I've never heard of anything like that before. Raising your interest rates, sure, but paying a fee for a low credit score? Who gets the fee and what is it called?

 

[LegendKiller]

Just what fees are these? I've never heard of anything like that before. Raising your interest rates, sure, but paying a fee for a low credit score? Who gets the fee and what is it called?

It's effectively an insurance premium fee that the GSEs are now charging on prime conforming mortgages. If you aren't a prime borrower, you pay the fee that is akin to an up-front insurance premium.

You're a more risky borrower, you pay the fee. Seems like Spidey's wife's government salary just ain't enough. She needs more gubment cheddah like any good socialist does.

Here's a thought, Spidey, instead of depending on the US taxpayers to back the securitization of your loan, why don't you find another lender that won't sell the loan to the GSEs. After all, only a socialist would want to use the GSEs anyway, so you should want to be a proud Repuglican patriot and avoid the "big government" anyway, right?

Ohh wait, I forgot for a second there, you're a hypocrite!

 

[HendrixFan]

It's effectively an insurance premium fee that the GSEs are now charging on prime conforming mortgages. If you aren't a prime borrower, you pay the fee that is akin to an up-front insurance premium.

http://www.housingwire.com/2011/02/11/higher-gse-guarantee-fees-may-increase-cost-of-homeownership

So this kind of thing? Doesn't that mean that he can go through a private bank and not pay the fee? Does he need a government backed loan to end up with the fee?

Edit: Did you ninja edit that? Seems like you answered my question.

 

[LegendKiller]

http://www.housingwire.com/2011/02/11/higher-gse-guarantee-fees-may-increase-cost-of-homeownership

So this kind of thing? Doesn't that mean that he can go through a private bank and not pay the fee? Does he need a government backed loan to end up with the fee?

Edit: Did you ninja edit that? Seems like you answered my question.

That's it. I was discussing these with a guy from Realpoint at the last ASF conference. He had a thought that if the GSEs raised such fees you'd see more lending in the private market, that is, unless rates for GSE debt didn't stay low. Interesting theory, seems like it could be true.

Had a great lunch during that conversation which was capped off with a discussion with Fred Thompson.

 

[HendrixFan]

This is hilarious, even for spidey.

He is upset at the government for making him pay a fee, even though the fee is there to steer people away from using the government and instead letting the free market decide his rates/fees/etc.

He doubled down on the hypocrisy.

 

[DaWhim]

credit is a game. i know most of the rules when I was still in high school. i joined a special program my high school offer and got the exposed on it. it is part of personal finance.

 

[OCGuy]

What state do you live in?


I am a mortgage underwriter in CA. I underwrite Fannie, Freddie, and FHA loans. I can assure you that a collection does not cost you $10,000.


Ignore all the other bullshit in this thread. If you want real answers, ask away....either here or via PM.

Broker made it very clear that these fees were mandated by the government. Exact words out of her mouth were "making responsible people pay for the fuck ups".

This is a joke, your broker is a joke.

 

[Aikouka]

That makes me wonder if I should look into a strange bill I received once. After I was laid off from my previous job, my... I believe it was life insurance tried to bill me for the rest of the year like I was still covered (I'm not after I'm terminated) . I just kind of passed it off as a mistake, but that may not be good in light of your own misfortune.

 

[spidey07]

It's effectively an insurance premium fee that the GSEs are now charging on prime conforming mortgages. If you aren't a prime borrower, you pay the fee that is akin to an up-front insurance premium.

You're a more risky borrower, you pay the fee. Seems like Spidey's wife's government salary just ain't enough. She needs more gubment cheddah like any good socialist does.

Here's a thought, Spidey, instead of depending on the US taxpayers to back the securitization of your loan, why don't you find another lender that won't sell the loan to the GSEs. After all, only a socialist would want to use the GSEs anyway, so you should want to be a proud Repuglican patriot and avoid the "big government" anyway, right?

Ohh wait, I forgot for a second there, you're a hypocrite!

I'm not a mortgage expert. Tell me how to avoid fannie/freddie and I'll do it. Do I go to a credit union?

I could do it on my name only but that's pushing it as I'll still have my current mortgage and house.

 

[spidey07]

What state do you live in?


I am a mortgage underwriter in CA. I underwrite Fannie, Freddie, and FHA loans. I can assure you that a collection does not cost you $10,000.


Ignore all the other bullshit in this thread. If you want real answers, ask away....either here or via PM.

This is a joke, your broker is a joke.

It knocked her credit down to 670 or there abouts. If we removed this ding it added 97 points to her score. The broker had to use the middle score from the 3 agencies to come up with the fee which was something like 2.75% which was about 10k. It was all a chart based on percentage down and credit score. Above 740 with 20% down and there was no fee or it was only .25%.

Are you telling me there's a way to avoid this?

 

[Kabob]

Wife and I are looking at buying our first house in the near future and credit is going to hurt me methinks. I don't have bad credit, on the contrary, I have NO credit. I've lived my life debt free, never borrowing, I have one credit card for gas and that's it. Apparently that sort of living is "unsafe" and it's going to be tough to get a good rate.

Grrrrrrr...

 

[bignateyk]

Can't you take her name off the loan?

 

[SunnyD]

620 credit score and I scored a $0 down 4.25% 30 year fixed rate mortgage in October of last year. No PMI either. Take that bitches!

 

[highland145]

It knocked her credit down to 670 or there abouts. If we removed this ding it added 97 points to her score. The broker had to use the middle score from the 3 agencies to come up with the fee which was something like 2.75% which was about 10k. It was all a chart based on percentage down and credit score. Above 740 with 20% down and there was no fee or it was only .25%.

Are you telling me there's a way to avoid this?

While it's in dispute, it not supposed to affect your score. So, in theory, dispute it and the go for the loan.

 

[highland145]

620 credit score and I scored a $0 down 4.25% 30 year fixed rate mortgage in October of last year. No PMI either. Take that bitches!

Well, it is AL.

kidding.

UDSA rural development program?

 

[Capt Caveman]

620 credit score and I scored a $0 down 4.25% 30 year fixed rate mortgage in October of last year. No PMI either. Take that bitches!

How can you not have PMI with $0 down? Let me guess, the PMI is built into the 4.25% or a federal program? And if you had a better credit score and it wasn't a federal program, you would have gotten a lower rate.

 

[SunnyD]

Well, it is AL.

kidding.

UDSA rural development program?

You betcha! :thumbsup:

Best part is I'm still zoned for the much, much better city schools versus the county schools. My neighborhood will be suburbia in about 2 years, likely with tons of shopping and convenience within a couple blocks. As it stands, I'm 7 miles from downtown/work anyway.

How can you not have PMI with $0 down? Let me guess, the PMI is built into the 4.25%? And if you had a better credit score, you would have gotten a lower rate.

As highland said, USDA Rural Develeopment loan, PMI is prepaid and built into the loan, and comes to about a grand total of $1200 over the life of the loan. The way USDA loans do their "insurance" is epic. And no, I wouldn't have gotten any better rate if I had a better score. USDA loans are always at a fixed level for everybody that qualifies.

 

[her209]

I'm not a mortgage expert. Tell me how to avoid fannie/freddie and I'll do it. Do I go to a credit union?

I could do it on my name only but that's pushing it as I'll still have my current mortgage and house.

Cash money

 

[highland145]

Grats Sunny.

 

[jhbball]

Wife and I are getting ready to buy our dream home so we went to talk to a mortgage broker to see where we stood. Turns out she's got one and only one big huge ding on her credit score, some bill that she never received or authorized and it's 60/90 days late. This single item is dropping her score 100 points, otherwise she'd be at 740+ (broker ran what if analysis stuff).

Anything under 740 and it's a sliding scale of fees due based on how much you put down and what your score is. A percentage of the mortgage amount ranging from .25 to as high as 3%. Even doing a typical 20% down this single 40 dollar charge that was late is costing us 10,000 dollars in fees.

Yeah, I'll be disputing that shit with the credit agencies and the debtor. Big mixup on card changes, name changes, her moving, etc. What's even more interesting is the broker said assets don't matter, all the banks care about is credit score and debt to income ratio (and appraisal, comparable properties). If we ran it on my credit/income alone I was approved for 4x my gross salary which is ridiculous.

Here's hoping 40 dollars doesn't cost us 10 grand.

Here's hoping you have to pay this fee.

FS07.

 

[sdifox]

meh, no mortgage. I do have a 375k line of credit on the house though.

 

[IceBergSLiM]

That's what is so frustrating. We have zero debt besides my mortgage but that doesn't matter. The score isn't hurting us getting approved for the loan at all, but the banks are demanding that 10K fee based purely and solely on middle credit score and money down. If we went with 5 or 10% it would be even worse.

That's not a down payment or anything, that's a freaking fee. Put a match to it and set it on fire.:'(

I've never heard of this. you should shop around. brokers and banks.