By Philip D. Ross
Senior partner
Credit Law Services
Credit Repair Offers New Life
Legal experts can take troubled clients from credit woes to closed loans
One of the most-difficult chal- lenges facing the mortgage in- dustry today is the tightening of
lending standards. This trend makes it
increasingly difficult for borrowers with
average credit — or worse — to get a
mortgage loan.
Many of today’s lenders hesitate to
approve loan applications for anyone
with a blemish on their credit report. as
a result, many of your clients likely face
financing hurdles. Knowing how to help
these clients can be the difference between success and failure.
For starters, you should inform clients with troubled credit that you won’t
give up on their file. In many cases,
your best bet will be to refer them to a
reputable law firm that specializes in
consumer credit repair. With the right
help and advice, mortgage applicants
often can rejuvenate their credit in
three to 12 months.
If you lack a referral partner who can
help your clients, consider forming a
relationship with one. By and large, the
credit-repair industry has grown consis-
tently since the enactment of the Fair
Credit reporting act (FCra) in the early
1970s. The act grants specific rights to
consumers regarding items contained
within their credit reports.
Mortgage brokers and loan originators, as well as lenders, have an important role to play in ensuring the
accuracy of credit reports. In the case
of lenders, they must provide accurate information to the credit bureaus.
When a credit report is in dispute, any
lender that reported a negative item
has an obligation to investigate the information and to rectify any errors. Brokers and loan originators can remind
lenders of this obligation and follow
up as appropriate. They also can guide
clients to referral partners with credit-repair expertise.
although consumers have the right
to dispute items on their credit reports
themselves, the process is often time-consuming and frustrating. Brokers
and loan originators with a strong referral partner can alleviate some of
these problems.
Make sure you investigate the back-
ground and track record of anyone with
whom you consider working. Your best
bet often will be to work with a com-
pany owned and operated by experi-
enced and reputable lawyers.
Philip D. Ross is a senior partner of Credit
Law Services ( www.CreditLawServices.com),
a national law firm that focuses on helping
consumers repair their credit. Credit Law
Services has the experience and expertise to
help clients ensure their credit reports reflect
only accurate and verifiable information.
ross, a graduate of Detroit College of Law,
is a member in good standing of the Michigan
Bar association. reach him at pross@
creditlawservices.com or (800) 379-7010.
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