What does my credit mean?
February 27, 2010 by Hanna08
When looking to buy a home, many rockford mortgage buyers are caught in a situation where they have no idea what their credit score is. Credit score is one of the most important factors in qualifying for a mortgage. It is also usually the sole factor in determining what rate the mortgage will be at. Finding what a buyers credit score is can be simple, but understanding how that score is determined is not.
One of the biggest rockford mortgages factors in determining a credit score is if the borrower pays their debts on time. This factor can determine around 35% of the overall credit score. These debts include anything that would show up on a credit report. This includes credit cards, auto loans and mortgages. In order to make sure these debts are paid on time one should consider creating a calendar to keep track of due dates or simply setting up auto payments.
The amount that is actually owed to these various areas of debt is another large percentage of a credit score. How much is owed can determine up to 30% of a credit score. Balances on revolving debt shouldn’t exceed 30% of the total credit line. This rule results from the fact that a credit score is partially based on the ratio of credit used to credit available.
How long a consumer has been borrowing also determines a percentage of a credit score. This part of the credit score tends to favor older consumers than younger. It is determined simply by the length of time from when the rockford home mortgage first credit was issued up until the current date. One easy way to keep this time frame long is to keep the first credit card issued open forever.
One more influence on credit score is credit diversity. Credit diversity refers to having different types of credit that are used. This could mean having a car loan, a mortgage and a credit card. A wider range of different types of credit can help boost a score. However, they still need to be used and definitely need to be paid on time.
tough question . it will look better to have a loan paid off than not paid off / still in collection. the issue is they could be fishing to see if you have access to that large of a sum so they know whether to pursue litigation and spend money on atty and filing fees/ process serving etc. Collectors are like detectives in figuring out what your assets are so they know how much they can get legally if it goes to court. I think that the rate they are offering sounds kind of low … which makes me suspicious.
I used to have a job years ago in a bank as a credit investigator but would have lunch with the coworkers that worked in collections / skip tracing. Was an interesting job / but it didn't pay well . Banks are pretty cheap on the salary.
All things considered, I think that I would try it out and offer to pay the money by end of month on the chance that it will work out.
i would negotiate a release that the loan will be paid in full and reported that it was paid off in full on your credit report. they should sign something to remove any record of reposession from your credit report in exchange for the money. that would help your report greatly. the money should be delivered by someone other than you and your husband and they should understand that you expect a paid in full / satisfaction of debt release paper prepared. it would be great if they also include language / agree to remove any record of reposession. the reason you would not go in person is because you could be legally served there.
Good luck negotiating . If you can pursuede them to do this / you'll save lots of money on future financing. A repo is a pretty big ding on your report and will cost you higher interest rates in the future.
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May 28, 2010
Mortgage Bankers Association
The MBA
Gentlemen;
FAS 140 and related summary, conditions and events classified under codification provides consistent standards for distinguishing transfers of financial assets that are sales from transfers that are secured borrowings.
No GAAP rules interpretation has ever received so much attention.
The new administration has done all they can to change the “sale” accounting rules under GAAP and various pronouncements made over a decade under FASB.
Specifically FAS 140 and SFAS 140 are my concerns with no mention here for revised rules and codification. Summary of Statement for Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities-a replacement of FASB Statement No. 125 (Issued 9/00)
This Statement revised from earlier standards for accounting for securitizations and other transfers of financial assets and collateral requires certain disclosures, carries over most of Statement 125's provisions without reconsideration.
Again, we are talking about accounting and reporting standards for bulk asset transfers and servicing receivables whereby the logical accounting practices address offsetting value by liabilities.
(Financial Assets – Liabilities) = Net Value
—————————————-
Servicing Assets
Controversy surrounds what I opine are two debilitating factors cause for the implosion of the markets. First is dereconginition or for the extinguishments of liabilities based on consistent application of a financial-components approach second focuses on controlling interest in assets sold subsequent to transfer.
The MBA by its own admission clearly states no modifications are possible but fail to include foreclosure in this discussion. The feasibility or prohibition of one event is linked to the other.
If a QSPE ceases to be qualifying because it no longer meets the qualifying conditions in FAS 140, a transferor of the loans to the QSPE would be required to record a ‘repurchase’ of any remaining previously transferred loans to the QSPE and recognize any liabilities assumed.
The effect would be an expansion of the transferor's balance sheet to include loans to which they no longer have legal title and liabilities they are not legally obligated to pay, with negative financial statement and regulatory capital implications for the company.
Consequently, if it were determined that restructurings of troubled loans would cause QSPEs to cease to be qualifying, mortgage servicers could be discouraged from restructuring loans that are expected to end up in foreclosure, to the disadvantage of transferors, servicers, investors, borrowers and communities
The first leg of the transfer consisting of whole loan assets to cash requires a gain on sale and therefore no concerns for the “missing” assignments.
Subpoena the general ledger of the seller. The second leg of travel is the transferring of cash for securities which is what I believe is capitalization of new business segments using tax payer insured deposits.
Come on MBA members and FDIC regulatory chiefs of staff. This is a monumental fraud and you’ve known about it. Upon any transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished.
Either a “Repo” exists needed to foreclose or no foreclosure is possible. The fact these moron attorneys and brokers are foreclosing will either bankrupt America or continue to foster secretive and fraudulent acts by the parties trying to back door the lender into the asset they lost at sale.
Forget the MERS and HERS and HIS arguments and see the cause and need to prostrate the fraud. These mortgages are charged and written down to zero and you cannot recover zero. So the collection agencies are picking up homes from homeowners being diverted by offers of modification and short sales. These homes are up for grams and only the Fee Title holders can fight from a position of strength and fend off adverse claims lacking merit.
How many homeowners went to their financial death not even knowing the strength of their arguments which were made over two years ago? How many?
You’re not using these obvious accounting rules to your benefit? FASB and the MBA have evidenced in wiring the acknowledgement a lender who sold the loan cannot foreclose on the borrower.
Foreclosure equates to major Bank Default while foreclosure restraint equal proper “sale” accounting compliance. Your using these MERS situational conditions and third parties sham sales should result in over one trillion being added to the balance sheets of America’s strongest banks due from recognition and that would spell complete financial disaster.
Servicing assets a servicing company owned by a lender and whereby it they both control the asset subsequent event means the liabilities must be incurred. Only upon release of the right to foreclose can the lender or NA continue to derecognize financial assets when control has been truly surrendered, and it derecognizes the liabilities when extinguished.
M. Soliman
Witness to Counsel
Tel. 213-880-6288
Mail
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