A Mortgage Broker on Rapid Credit Rescores for Subprime Loans
RUSH: Yeah. It should. People’s credit scores were just restored to 700, to perfect, just to qualify ’em for mortgages.
CALLER: Yeah. And it took literally less than 15 minutes at the end of the day. I mean we could fax it over and have it faxed back and rapid rescored. Now, did that hold? If six months later they applied for credit, was that still there? No, oftentimes it wasn’t. Which means that’s all it was for. You couldn’t rapid rescore for a home loan unless you knew a mortgage broker.
RUSH: Wait, wait, wait, wait, wait, wait. You gotta let me in here for questions, ’cause this is blockbuster. So the rapid rescore was a temporary rescore just to get people a mortgage, but that credit rating didn’t survive if they tried to use it for anything else?
CALLER: It wouldn’t survive the next update from the credit bureau, from whichever of the major three. If they’re doing it quarterly, monthly, the next time that update came along everything was back on, everything was like it was before. I actually knew people who had friends that owned mortgage businesses and they would go in there to have them rescore them so that they could go get a car loan.
RUSH: Okay. So I’ll tell you who’s really ticked off about this hearing your call — all the people who played by the rules. They didn’t buy anything they couldn’t afford. What you’re basically saying is that people who were unqualified were qualified on a temporary basis to go buy whatever they wanted, and then that paper, that mortgage, it was packaged with a bunch of other mortgages and sent down the trail where they tried to find value in it somewhere else along the line?