Liquidity Crisis Increases Demand for Credit Repair

As the nation experiences the effects of the recent mortgage liquidity crisis and lenders raise their minimum required credit scores, many borrowers are scrambling to qualify for any mortgage loan—when in weeks past a wide variety of loan programs would have been available to them. As a result, demand for credit restoration services are on the rise.

“Just in the past 60 days, public interest in credit repair has risen 33 percent,” says Edward Jamison, founder of Jamison Law Group and CreditCRM.com. “That’s because credit restoration is the fastest way to increase the chances of getting a higher quality mortgage loan, and for some, it’s the fastest way to qualify for a loan at all.”

Of the factors impacting the mortgage underwriting decision, the credit score is the only variable that can be adjusted in time to impact the final determination. Unlike the property’s value and the borrower’s income and employment status, credit scores can be increased with a few simple steps and in as little as 60 to 90 days.

“Many borrowers erroneously believe that there’s nothing they can do to affect an underwriting decision in a timely manner,” explains Jamison. “This assumption is simply not true. Borrowers have much more control over the approval process than they may believe. There are several very quick action steps borrowers may take that can positively impact their credit scores. However, these actions are often overlooked because most borrowers don’t understand how the credit scoring process works. These steps may be as simple as asking for higher credit limits on credit cards, and making sure that maximum credit limits on each credit line are reported. Simple actions, much like these, have the ability to make a huge difference in the final score.”

According to Jamison, credit restoration is the legal and legitimate process of eliminating derogatory credit information from an individual’s credit report, and can result in an increased credit score in a matter of weeks. Borrowers of all levels can utilize credit restoration to increase their credit scores and impact the underwriting decision to better their chances of not only getting a loan approval, but also securing higher quality loans.

“In today’s volatile market, it makes sense for borrowers to ensure that they have obtained the highest possible credit scores available to them,” adds Jamison.

~~ from National Realty News