Fed, FTC Propose New Rules on Lenders

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Hello people-why do you think these consumers have a 550 score? They never pay anyone! The have collections ranging from cell phone service, medical bills, unpaid rent, etc. They didn't pay their credit card bills (at all) so they've been charged off. They've had auto's repo'd-the list goes on & on. Why should my lender give them a 5.50% rate that a consumer with a 700+ score gets?

Above Posted By: loan officer J | Fri, 9 May 2008 07:44:53 EST

one way to fix this current problem of forclosure is by modifying every home owner's rate to the national par rate accross the board. what's happened is every american wants the dream of owning a home no matter the cost but in true reality the dream is temporary based on the rates and programs that are offered to some consumers. let's all be happy americans and lets have all banks modify all these ridiculous rates and programs issued to home owners in the past.

Above Posted By: anonymus | Fri, 9 May 2008 05:33:50 EST

Explain to me again why we need credit card companies: Credit Beauras , Mortgage Companies etc ..... Why don't we just eliminate the middle man and let FHA, Fanny and Freddie handle it : Give the consumer loans at prime rate plus 1 or 2 points and let all the money changers go to work for the govenment ! That certainly would fix many of the economies problems from where I stand !

Above Posted By: Hot | Thu, 8 May 2008 13:56:50 EST

Credit agencies are simply wharehouses of information. They only report what has been reported to them. I think the focus should be turned back to the consumer that they be educated as to what is reporting on their credit bureau and how to easily dispute inaccuracies. Beyond that the creditors that are inaccurately reporting items to a persons credit bureau should be called on the carpet. ie...if a creditor is going to take the time and effort needed to report a derogatory item to the credit bureaus they should also be required to take the same time and effort to report that the item has been satisfied or is current when the consumer does their part. Creditors who fail to update the satisfactory status of a tradeline should be fined for not doing so.

Above Posted By: Mike | Thu, 8 May 2008 13:33:42 EST

What is accomplished here? Does the Fed's think those with poorer credit management should be given the same options as an excellent credit manager? If a client has been late paying on an account of $3,000, the lender should lend the client an accoount of $200,000 and <5% down payment? The lender tells the borrower about their loan conditions and they sign off that they have been told. But they forget what they were told. "this index will vary according to the bank market conditions" therefore "the rate wil vary up and down." It seems that the client only hears the down part. The lender is required to send the client a writen notice as to what the new rate is going to in 30 days and usually with a reason of the change. (LIBOR + margin = ?){LIBOR index is published daily in many major newspapers} The "variable rate rider" is an addendum to most deeds. Saying the maximum rate and minimum rate, when it can be changed and by how much each time. Most home buyers are adults with a reading level of the 8th grade or better. Therefore they have the information well in advance to any change if they so search for it. Speculation is just that..speculation that the value is going to increase by a constant rate >8% each year for 50 years and so they can harvest the equity bonus in the future sometime. Hellooo? Greed for money is a powerful force.

Above Posted By: impressed | Thu, 8 May 2008 13:20:47 EST

I agree that the Credit Reporting agencies have got to do a better job if everything is based on the score they are giving out. I also believe those that report to the agencies have got to do a better job.

Above Posted By: Anonymous | Thu, 8 May 2008 13:10:00 EST

With the many inaccuracies on credit reports and the strict credit score guidelines the lenders impose, I would think that the credit industry should be called on the carpet also. One point less on the credit report could be the difference of lowing a home owner’s mortgage payment to them losing their home to foreclosure due to adjusting rates.

Above Posted By: coop | Thu, 8 May 2008 11:31:18 EST

Fed, FTC Propose New Rules on Lenders

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