Skip to main content

Southern Trust Mortgage Wholesale Lending Division expands

National Mortgage Professional
Dec 10, 2006

NAMB industry alert: Changes at Experian and Equifax expected to increase costs and decrease access to credit for marginal borrowersMortgagePress.comNAMB, Experian, Equifax, credit reports, non-prime borrowers Beginning Jan. 1, 2007, new Experian and Equifax fee structures are scheduled to be implemented that will increase the cost of obtaining consumer credit reports and will likely restrict a marginal (non-prime) borrowers access to credit. Currently, each time you access and submit a consumers credit report to multiple wholesale lenders, in an effort to find funding for your consumer, you pay only once for that report. Beginning in 2007, Experian and Equifax will charge you for each submission and release of your consumers credit report. You will have to absorb these costs, which will range from $8 per loan application to possibly upwards of $200, or pass the additional expense on to your borrower. The National Association of Mortgage Brokers believes that this significant increase in costs will ultimately limit a consumers ability to comparison shop for loans and will likely have a profound effect on marginal (non-prime) borrowers access to credit. NAMB is very concerned about this increase in the cost of obtaining credit reports for consumers, and is alerting you now so that you can prepare for these costs to potentially double, triple or even quadruple at the beginning of 2007. The new reissue/secondary use policy is expected to generate significant revenue for both Experian and Equifax, by increasing the number of transactions for which credit reissue fees will be charged. Experian and Equifax will be the only beneficiaries of the revenue generated by this shift in policy, and because of their dominant status in the marketplace, they will be able to increase their volume of business, with no additional cost, and without providing any benefit to consumers or the mortgage industry. NAMB is working to educate all parties involved about the serious concerns raised by this new policy and fee structure; namely, the unnecessary increase in consumer credit costs without any residual benefit to the consumer, as well as the possibility that non-prime, first-time and minority homebuyers will be denied access to affordable credit. For more information, e-mail [email protected]
Published
Dec 10, 2006
Rocket Arms Brokers With Bully Shield Vs. UWM

Rocket covers penalties and court fees for brokers who want to get out of United Wholesale Mortgage’s ultimatum contract. 

Industry News
Feb 06, 2023
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Industry News
Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Industry News
Jan 26, 2023
Housing Prices Across Texas Likely Hobbled In 2023

But you’re getting a lot less for $1 million

Industry News
Jan 23, 2023
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023