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​Big banks falsely reported bankruptcy, foreclosure for thousands of borrowers -- lawsuit

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Mortgage Professional America | 02 Oct 2014, 07:56 AM Agree 0
Two of the country's largest lenders are facing allegations that they falsely notified credit reporting agencies that thousands of homeowners were bankrupt or in foreclosure
  • Steven W. Stutman - Foreclosure Defense Attorney | | 02 Oct 2014, 12:52 PM Agree 0
    What else is new…
  • TeriG | | 03 Oct 2014, 06:56 AM Agree 0
    I see this all the time on credit....I think they should go after them for mis-information. I'm a broker, and I have a 72 yr old Veteran trying to get a mortgage, and the new lender see's a previous mortgage in BK on credit....of course they want his first born as proof it didn't happen. HE STILL LIVES IN THE HOME AND THE BK WAS 6 YRS AGO. The previous mortgage company reported to all 3 bureaus that the account was included in BK. He has repeatedly tried to dispute the info, and it's still there....even though there is zero proof that the creditor could have provided the credit agencies that his home was discharged in the BK. I see mis-information everyday. While we are on the subject of credit agencies...I may as well throw in my 2 cents about the credit scoring models....WHY CAN'T WE JUST HAVE 1 MODEL? I get customers' all the time who check their own credit online, think they are good....I pull it and their score is 30 pts lower...they get mad at me for that! There should be 1 model for all mortgage types and all people...makes MUCH MORE SENSE TO ME and there is just no logic to it at all the way it is now.
  • Griff | | 03 Oct 2014, 08:28 PM Agree 0
    Lenders should have to report the facts. When a person files bankruptcy even a Chapter 13 the lender reports all debt in the bankruptcy EVEN if it is being paid on time and a borrower never missed a beat. Reports read "in bankruptcy" and they report no payments. I am working on this now where the borrower was prevented from refinancing because of this reporting. However, having filed a dispute the lender is now reporting no lates since 2010, but the borrower had to go thru he!! and back to get it done. We'll try again to get it done.

    I think, but I'm not an expert, Congress has the power to change the b/r rules. If so, they need to make it accurate. File a Ch 13, and continue to pay some stuff, then it should report that way!
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