Credit Score Fake

My wife and I and some friends visited Brazil this past December. In addition to squishing our toes in the sandy beaches (and seeing not much in the way of swim suites……….), drinking caipirinahs, and listening to swinging sambas, we also  visited some gem shops (and even gem museums!).  Some really beautiful stones. Some even more beautiful fakes as well.

I’ve always wondered, if the fake diamond looks as good as the real one,  well, you know where I am going with this….

This article spells out some of the problems with our current credit score system. For better or worse, credit score is the most important risk factor when a loan officer evaluates a borrower’s loan availability. In the last several years, as lenders undervalued other factors (down payment, assets and reserves, etc.), credit score became more important. Yet if the credit score system could be manipulated and thus became less legitimate and reliable and more “faux,” borrowers, one could say, were getting fake gems. Though borrowers went to closings and signed papers and got their houses, the strength of their loans was quite flimsy. And now we have all the foreclosures.

Your loan officer offers programs. You either accept or not. You should know how strong your application for a loan approval will be and if you should accept certain loan programs and if the mortgage program is in your best interests.

When you are buying jewelry you are certainly going to decide if you want real jewels or fakes.  Please do the same with your loan.

10 May 2007 | First Time Homebuyers, Credit (Score) | Comments

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