Stephen Leifer's Page

As published in Scotsman Guide’s Residential Edition, June 2009.

Chances are that the number of clients you have had to turn away because of credit issues has increased in the past two years, as the mortgage crisis took hold and credit markets tightened. Even clients with FICO scores in the 700s have had trouble obtaining mortgages.
As foreclosures have increased — and as legislators have worked to encourage lenders to slow the pace of foreclosures — banks have taken a much more conservative po… Continue

If you have been frustrated by some of the dirty tricks credit card companies play such as extremely high penalties, spontaneous interest rate hikes and credit limit reduction, take heart. The federal government is working on a number of new regulations to help consumers in this area. Two initiatives are working their way through Congress now, the Cardholders’ Bill of Rights and the Credit Card Accountability, Responsibility and Disclosure Act (CARD). President Obama has also met with the heads… Continue

Simply put, the answer is sometimes. On average, credit scoring has proven to be a good predictor of consumer behavior, with those scoring low defaulting more frequently than those with high scores. However, this is true only when you look at large volume of loans. On an individual basis, however, the credit scoring process can be grossly unfair, and result in a denial of credit or employment, higher rates on interest or insurance premiums and other negative outcomes.



In 2002, the Consumer Fe… Continue

Since the real estate market has experienced a hit, home prices have plummeted, which is good news for homebuyers. Unfortunately, the tight credit environment created by a series of bank failures and the shaky real estate market has made an affordable mortgage out of reach for many Americans. Even consumers with good credit have been rejected for home loans or have only qualified at higher interest rates, putting their dream home out of reach.



If your client has excellent credit, with a FICO… Continue

If you are way behind paying your credit card bills, there are circumstances in which it would be better not to pay them. When you do not pay your credit card company, they have the ability to sue you to collect their money. If they win and get a judgment against you, the court can garnish your wages, seize your bank accounts and/or seize your assets. This is certainly something you want to avoid, if possible. However, creditors only have a specific window of opportunity in which to sue you, due… Continue