All Forum Posts by: Account Closed

Originally posted by Tim Wieneke:

FICOs been around for 52 years.

Not exactly.

Fair Issacs first proposed their "independent" risk assessment model in the late 1970's. It was marketed directly to lenders and did not gain widespread use until the 1980's. It was introduced into the underwriting process when computerized underwriting software can on scene in the 1980s.

But, it didn't explode into widespread use in the mortgage world until the rise of the personal computer and the introduction of desktop underwriting which was based largely on the FICO score. That is when lenders started "reducing cost" by not doing the kind of underwriting they had historically conducted before.

The FICO model gave them the confidence to relax their due diligence practices. But, when the FICO became all important, it didn't take long for people to learn they could game the system and artificially inflate their scores.

For the record, I did not say FICO caused the problem. I said it facilitated it.

The problem was poor underwriting practices. Those poor underwriting practices were tolerated because of belief in the FICO models, which btw, data showed to be sound.

The ultimate flaw in the whole system is the FICO score is able to be gamed through these various "credit repair" schemes.

Originally posted by Brian Diez:

The FICO scoring model isn't to blame

If you are going to misrepresent what I wrote there is no point in my reading any further nor is any discussion possible.

Go back and read what I wrote.

Originally posted by Brian Diez:

I'm curious to know your position on credit repair. Do you believe in it's benefits? Do you believe it's legal? What experiences have you had? Do you use it in your business? How?

Okay, well, please remember, you asked... :lol:

The various credit repair schemes are just ways to game the system. Legal? Sure, the system is built that way. Ethical? Well, that is for each to decide.

However, the huge flaw in the system allowing itself to be gamed is at a heart of the mechanics allowing the housing bubble and the extreme proliferation of mortgages that should have never been written with borrowers who should have never been approved.

Now, don't misunderstand me. I am not saying this flaw caused the problems we are facing only that it facilitated it.

The vast majority of the loans in trouble today were poorly and minimally underwritten. The primary criteria was the FICO score. Many argue about the accuracy of the FICO model to predict future behavior but no one, not one single expert, disagrees that the FICO model is 100% dependent on correct and complete information on the subject being modeled.

Prior to the FICO gaining its current lofty position, few people really bothered with the minute details of what was in their credit report. When they needed a new loan or mortgage, the information in the credit file was just one of several determining factors. If there was something questionable, it was usually addressed with the underwriter, proof was submitted and that was the end of it.

However, once almost all the lenders when to software based desktop underwriting systems the FICO became all important. That meant every little detail in the credit file could positively or negatively affect the FICO score.

The FICO model was built prior to the current era of "credit repair" and that leads to its flaw. It assumes a pattern of behavior on the part of lenders and consumers that no longer exists.

The pendulum never stays in one place. It is swinging back to the other side. The FICO is under intense scrutiny and eventually will either be modified or replaced. Lenders are also changing their behavior to adapt to the consequences of the consumer changing theirs.

That is a long winded way of saying, the ways credit is "cleaned up" are becoming less and less effective especially for loans like mortgages where the lenders are moving beyond the traditional consumer credit report as their primary basis for evaluating credit worthiness.

Originally posted by soliver0012:

It's a principal thing , he was just such a dick that he deserves it.

Please do not take this the wrong way...

Only a fool sues on principal.

Originally posted by soliver0012:

Please advise!! Thanks!!

You are going to need a lawyer to pursue this. I know you think this is a simple matter but it probably isn't. You say he owns the property. Does that mean you have seen the deed?

You may (or may not) have several theories to claim against the landlord, that is where an attorney will help you.

I'm with the others on this one. I would not charge a fee for any kind of service animal for a handicapped renter and as Tim W mentioned, I wouldn't charge it for an officer with a K9 partner who rented from me.

Originally posted by Tim Wieneke:

Originally posted by Taz:

Originally posted by MikeOH:

I think a degree in grade school or pre-school teaching would be more appropriate for dealing with tenants.

Mike

I think you both need better tenants, we just don't have these types of problems very often.

Talk is cheap.

Great property management is even cheaper. :cool:

Originally posted by MikeOH:

I think a degree in grade school or pre-school teaching would be more appropriate for dealing with tenants.

Mike

I think you both need better tenants, we just don't have these types of problems very often.

Originally posted by Connie Brzowski:

I absolutely do not accept cash. It's in the lease and I go over this with every tenant to make sure they know we're a No Cash business.

Be very careful with that approach. There is a lot of case law dating back to late 1700s/early 1800s covering this. You are basically saying the lawful currency of the United States is NOT acceptable to pay the debt your tenant owes. The courts have consistently ruled if US currency is not acceptable to pay a debt, the debt does not exist.

You could require them to meet you at your bank and immediately deposit the money, or you could give them deposit slips and let them deposit it themselves.

BTW, if you use the deposit slip method, make sure it is an account you sweep the funds out of daily. By giving your tenant a deposit slip you have given them everything they need to make withdrawals too.