Here's $50 -- try this credit repair company I found(ed)
Posted in RESPA reform By Matt Carter, Tuesday, August 19, 2008.Terry Ross, a "Certified Mortgage Planning Specialist" in Tomball, Texas, wants readers of his Active Rain blog to know he's "finally found" a credit repair company that not only "guarantees results" but will pay referring realtors and loan officers $50.
"Some have raised RESPA concerns. This is not a Real Estate Settle Procedures item and as such not governed by RESPA," Ross says. "We have agents who have already reffered and got paid for 10 or more clients."
Wait, WE have agents?
Well, it sounds like Ross did more than just "find" the Magnolia-based company, Everest Credit Services -- he founded it. On his ActiveRain bio Ross notes that "I also own a Credit Repair business in Magnolia."
Seem to recall a recent class action lawsuit where some folks who argued that natural hazard disclosure reports were not subject to RESPA are now preparing to pay out $39 million.
Any thoughts on whether credit repair (or credit reports) fall under RESPA?
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Submitted by Diane Cipa on August 19, 2008 - 9:41am.
ROFL Come on, Matt. Are you baiting us for rants? ;)
We're still in the "here", though not for long. I do hope the "after" will be a place where stuff like this just won't be able to fly in the open because awareness will reign supreme.
Duh, a gal can dream, right?
Submitted by Dave Wirsching on August 19, 2008 - 10:30am.
Definitely baiting us. No way I'll respond. :-)
Submitted by Matt Carter on August 19, 2008 - 10:40am.
OK, its true -- when a Google alert pulls something like that into my inbox, its entertainment value is a consideration in deciding whether it deserves a post...
That said, I WAS looking for somebody to weigh in on whether this is a settlement service covered by RESPA. It looks from HUD's impact analysis of the proposed rule change that there's no question credit reports are covered, and that credit bureaus are considered settlement services providers. But I don't know if anybody's ever tested the idea that providing credit repair is not.
I guess I should invite Mr. Ross to join the discussion, and ask him how he came to that conclusion...
Submitted by Diane Cipa on August 19, 2008 - 10:51am.
If I had to guess, I'd say credit repair as a stand alone service is not a settlement service. Combine his business plan with mortgage lending and can you spell K-I-C-K-B-A-C-K?