Rapid Rescore Costs

By
Mortgage Banker with Service First Mortgage NMLS# 335055 335055

Rapid Rescore Costs

What is Rapid Rescore?

A Rapid Rescore of a credit report is when a client provides documentation about erroneous information on their credit report…. And their Loan Officer submits these items to the credit bureaus to be updated. The loan officer doesn’t go directly like a consumer would. The loan officer will go through a 3rd party company that they use to pull credit. Examples are: Credco, Factual Data, ect…..
The Rapid Rescore process takes 3 – 5 business days. It has been my experience that these rescores are usually done in 2 – 3 days. The 3rd party companies I have used in the past have all been pretty quick about turn times.

How much does Rapid Rescore cost?

Rapid Rescore costs the loan officer(or, rather the lender who is being billed for credit pulls) about $35 per trade line per bureau.
So, if you need to correct 2 items on all 3 bureaus(Equifax, Experien, Transunion) then that is $35 X 6 = $210

Now, here is the good part!!!!

Of these 3rd party companies that I have used in the past…… Every one that I have ever discussed Rapid Rescore with has informed me that it is ILLEGAL to pass along the cost of the Rescore to the client. That’s right….. I said ILLEGAL!!!
Technically it is a violation of RESPA (Real Estate Settlement Procedures Act).
HUD defines this service as something that generates an ‘Unearned Fee’. Unearned Fees are not allowed per RESPA.

So…. Who pays for it? The lender does. It is simply a cost of doing business.

Will you be asked to pay for this from an unscrupulous or ignorant lender? Sure you will. But ignorance is no excuse for breaking the law. And this law has teeth. As an Act of Congress, lenders can be charged: Any person or persons who violate the provisions of this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both.

I don’t think it is worth it to cheat the system. And I wouldn’t work with a lender who cheats either.
Do yourself a favor and read the law…. Know your rights. And if you have any questions about this article…. Contact The DallasLoanGuy, Tom Burris.

 

Tom Burris
DallasLoanGuy.com
NMLS# 335055
Dallas, TX

214-763-4629 cell/text/nights/weekends

http://www.dallasloanguy.com/
The ORIGINAL ‘Loan Guy’ from Texas…. Often imitated, never duplicated!!!

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

 

http://dallasloanguy.com/rapid-rescore-costs/

 

 

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  1. James Lyon 01/21/2012 11:19 AM
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Topic:
Lending / Financial
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Collin County, TX Real Estate Professionals
Home & Credit Savvy
Mortgages
Texas Real Estate
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rapid rescore costs

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Rainmaker
1,749,560
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Thanks for the information about Rapid Rescore. I will check it out with some local lenders.

January 20, 2012 07:03 AM
Rainmaker
563,774
Kathy Sheehan
Movement Mortgage 770-634-4021

It was my understanding too that these charges could not be passed on to the buyer.  I am going to verify with compliance.  

I love the rescore as a tool to help borrowers get the best interest rate.

January 21, 2012 11:37 AM
Rainmaker
312,788
Tom Burris
Texas Mortgage Dallas Mortgage FHA
Service First Mortgage NMLS# 335055

Kathy,

I got a non-answer from HUD. They recommended that I email CFPB...  ugh!!

Please report back.

 

January 22, 2012 10:57 AM
Rainmaker
537,977
Eric Michael
Metro Detroit Real Estate Professional 734.564.1519
Remerica Integrity, Realtors®, Northville, MI

Tom, I never knew how that worked! Thanks for clearing it up. I can't believe that you aren't allowed to say how much it costs. Amazing.

March 25, 2012 02:05 PM
Rainmaker
312,788
Tom Burris
Texas Mortgage Dallas Mortgage FHA
Service First Mortgage NMLS# 335055

We can say how much it costs.... We just cannot pass along the charge to the borrower.

 

March 26, 2012 12:43 PM
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Rainmaker
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Tom Burris

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