Had something happen recently that changed how I look at credit challenged borrowers.
A file that looked basically dead because of credit ended up moving way faster than I expected once the right negatives were attacked/removed. It made me realize some of the borrowers we’re writing off as “come back in 6–12 months” might actually be closer than we think, if the issue is specific derogatory items and not just a weak overall profile.
Obviously, I know the credit repair space is full of overpromising, and I’m not talking about magic. But when the file has income, assets, and real intent, and the only thing killing it is fixable credit damage, the upside of having the right credit contact is pretty big.
For the LOs her, how are you handling those files? Do you have someone you trust for this, or are you mostly just telling borrowers to wait it out?
Also curious what you’d need to see before trusting a credit repair person with your borrower, deleted items, score movement, compliance, speed, communication, refund policy, etc.