The NCRA is a non-profit trade association that represents the Consumer Reporting Industry and specifically “Mortgage Credit Reporting Agencies”
They claim that consumers can have their credit reports correct through investigations submitted to the RESELLERS, the companies preparing the mortgage credit reports and get corrections within 24 - 48 hours.
I have to say that I don't see that happen. As a matter of fact, I recently had a client who was declined for his mortgage because an entirely fraudulent Sprint small collection was reported. I recommended that he download the FTC ID theft affidavit.
Not only did his broker advise that it would be 72 hours, but then they entirely REFUSED to investigate his dispute. I don't know whether my client's broker lied or what the heck is going on.
I DO know that none of my clients have ever been able to get the mortgage credit reporting companies to actually correct anything.
I also know that there is a serious problem with the FEES for these disputes. Clients have been told that they have to pay anywhere from $15 to $75 per dispute and I also read that the law prohibits brokers from charging for these investigations.
Why on earth should the BROKER pay? It's not HIS screwed up credit!
The cost of investigations is NOT addressed in the NCRA testimony.
It revolves mostly around the INCREASE in costs as the CRAs are now charging the resellers for EACH time a report is viewed by a lender.
I haven't brokered any mortgages since the mid 90s, but here is how it worked for me:
I'd order a client's mortgage credit report and submit the loan file with the report to a lender. If they denied the loan or I didn't like the rate / terms, I'd submit the file with a new printout of the report. There was never a charge for reprinting, it was always the same report.
I'll ask the NCRA for clarification about this.