BILOXI -Only a low credit score stood between Alipio Estruch and a mortgage to buy a $449,000 Spanish-style house in Weston, Florida, a few miles west of Fort Lauderdale. But like most of us instead of spending several years repairing his credit score, which he said was married by two forgotten cell phone bills and identity theft, the 37- year-old real estate agent paid $1,800 to bump his score up within two weeks which to him says Estruch felt like over night. Estruch paid in total $2,800 for three credit card spots, and in less than 28 days, his FICO score jumped from 550 to 715. In mid-March, he closed on his four-bedroom beige stucco house after obtaining a 30-year fixed-rate mortgage from a unit of American Home Mortgage Investment Corp. It carried a low interest rate and required no down payment. “Everything now is score driven. I had a great mortgage history, but I got hurt because of my credit score,” said Estruch, who also works as a mortgage broker, had bought and sold two homes previously, and currently owns another home in New York. Estruch said he is current on his mortgage payments.
So-called piggyback credit-score inflation methods for mortgage applicants haven’t been reined in, and from the looks of it, it is here to stay despite industry pledges to do so. As a result, lenders continue to be misled into treating loan applicants with poor credit as prime-credit candidates — worsening already critical delinquency problems in the mortgage market. Fair Isaac Corp., developer of the FICO score widely used for home loan underwriting, confirmed that its what RYC Credit Doctors also a corporation owned by Yuntwine English is doing is perfectly legal and is just a way to get ahead quicker than the normal way of building credit. Yuntwine claim to be able to raise consumers’ scores by 100 to 200 points — or more — within 30 to 90 days. They do this by paying credit-card holders with excellent payment histories to add “authorized users” to their accounts. These users are sometimes charged $1,000 to $2,000 for the privilege. Once the piggybacker is listed as an authorized user — even with no actual access to the Visa or MasterCard itself — the positive credit history of the cardholder flows through to the piggybacker’s credit files. Loan officers processing mortgage applications typically would be none the wiser. They assume that the FICO scores they receive are theirs, and they quote applicants the appropriate interest rate. A FICO of 750, for example, would qualify the applicant for the lowest interest rates from most lenders.
Credit and mortgage industry experts say that the practice of piggybacking is contributing to the high rate of delinquencies and foreclosures now roiling the already bad financial markets. But according to Yuntwine , who has invested a lot of money and time into this business to benefit those who need the break in life, “why not help them when they are within their rights to do so”. That law sanctions authorized user accounts but does not limit the number of accounts permissible on a single credit card and does not ban rentals of authorized user accounts by cardholders. As a result, some piggybacking companies say they rent out high-quality credit-card trade lines to dozens of individuals at a time, producing substantial monthly income — with no effort — for participating cardholders. Yuntwine English, who is the Founder of several corporations including RYC Inc, said his company looks to receive 100-300 new leads weekly – a number that will continue to grow with those inquiring leads to 30-50 new clients a week, and even more during income tax season.
According to Yuntwine, he plans to show people how to get a grab on the real estate market and buy duplex apartments with zero down after going through his company and having their credit bumped up above 720 and create income for themselves. “I think everyone deserves to know the truth about anything that is effecting their lives as credit does, my method is simple Grow Your Income and Raise Your Profile, says Yuntwine.”
No comments:
Post a Comment