Navigation Links
Although Interest Rates Plunge, Credit Reporting System Prevents Many Borrowers From Seizing Opportunities
Date:12/8/2008

PLANO, Texas, Dec. 8 /PRNewswire/ -- When the Federal Reserve announced its plan to invest up to $600 billion in mortgage backed securities owned by Fannie Mae, Freddie Mac and Ginnie Mae, mortgage interest rates dropped to their lowest point since February 2008. However, few borrowers may actually qualify for these savings. In addition to tighter lending standards and declining home values, borrowers are also being plagued by the nation's credit reporting system.

According to Rodney Anderson, the country's top producer of FHA/VA loans and the fourth highest producing loan originator, 45 percent of the 1,701 loan applications he received between June and September 2008 had borrowers with at least one medical collection account. "In evaluating these loans, we uncovered a huge injustice against the American public," says Anderson. "The tragedy is that the collection accounts, even those that have been paid in full, are lowering these individuals' credit scores, often to the point that they either can't qualify for a loan, or will have to pay higher interest rates if they do."

A nationally acclaimed mortgage and credit expert, Anderson regularly appears on WFAA Channel 8 Good Morning Texas, and the Evening News of CBS 11 and TXA 21. He also has a weekly radio show to discuss the mortgage industry and provide consumer advice. He explains that medical collections are particularly problematic because of four main issues:

-- Medical billing is a notoriously error-prone arena

-- Many individuals with medical collection accounts never received the bill in question

-- Medical collection accounts customarily remain on a credit report for seven years after the individual has settled or paid the account in full

-- Medical collection accounts can reduce a credit score by as much as 100 points, sometimes more.

"The issue of medical debt plagues the patient-physician relationship, to the detriment of the health of the patient," says Texas-based cardiologist Fred Maese, MD, FACC. "The way the system is set up, there's no incentive for patients to settle their accounts quickly. Once the collection account hits the patient's credit report, that consumer is held hostage for up to seven years, whether they settle the account or not."

"Based on our extensive research, we can surmise that nearly half of Americans have at least one medical collection debt that's lowering their credit score," says Anderson, who uses analytical software to evaluate credit reports and determine how borrowers can best improve their own credit scores. In doing so, he found that medical collection accounts are routinely reducing borrowers' credit scores by 60 to 100 points or more. "This is disastrous news for loan applicants, especially since earlier this year Fannie Mae and Freddie Mac started requiring higher credit scores to qualify for loans, and loan servicers of FHA and VA loans have implemented additional credit score-based premiums," he adds.

Anderson, a vocal advocate and educator in the credit arena, has initiated a petition to create a federal law mandating the permanent removal of a paid or settled medical collection account from the consumer's credit report within 30 days of settlement.

"I've seen many hard working, conscientious individuals who diligently address their monthly obligations, but because they unwittingly incurred a medical collection account, are forced to settle for a mortgage rate that's half a percent higher than if they'd never had that collection account," adds Anderson. "That half point can translate into thousands of dollars in wasted money, and that's only for a home loan. They can also expect higher rates for auto financing, credit cards and insurance. That's a hard pill to swallow for the many individuals who were never notified of the initial billing and who have since paid the collection account in full. In this market, where interest rates and low home prices present the ideal time for buying, we need to make sure that individuals who deserve credit, get it."

More information on the Credit 911 Medical Relief Bill is available at http://www.rodneyanderson.com/credit/medical_collections.php .

About Rodney Anderson

Rodney Anderson is the executive director and senior managing partner of Rodney Anderson Lending Services in Plano, TX, a division of Supreme Lending, a nationwide broker/banker with over 100 branches nationwide. Rodney has over 25 years of experience, and is the #1 FHA/VA lender in the country, the top originator in the state of Texas, and the #4 originator in the United States. A renowned mortgage and credit expert, Rodney hosts a weekly radio show and frequently appears on WFAA Channel 8 Good Morning Texas, and on the Evening News of CBS 11 and TXA 21. For more information on Rodney Anderson, please visit www.RodneyAnderson.com or call (972) 985-5208.

    PRESS CONTACT:
    Rosalie Berg
    Strategic Vantage Marketing & Public Relations
    (305) 971-5352
    PR@StrategicVantage.com

'/>"/>
SOURCE Rodney Anderson
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Although Remicade and Humira Are Being Increasingly Prescribed for Crohns Disease and Ulcerative Colitis, Insurers Are Subjecting Both Drugs to Multiple Cost-Control Strategies
2. Northstar Healthcare Announces Option to Purchase a 60% Interest in The Palladium for Surgery - Dallas
3. Sponsor of Presidential Health Care Forum Has a $4 Billion Conflict of Interest: Kucinich
4. New Survey Finds Strong Public Interest in Prescription Drug Safety Issues
5. Audio: New Survey Finds Strong Public Interest in Prescription Drug Safety Issues
6. Doctors Applaud SCHIP Veto: Bill Supports Special Interests, Not Kids; Almost Half of Funds Go to Doctors & Seniors
7. STAAR Surgical to Purchase Canons Interest in Japanese Joint Venture
8. MedQuist Evaluating Whether a Sale of the Company is in the Best Interests of the Company and its Shareholders
9. TIGroup Acquires Controlling Interest in Healthcare Services Provider
10. Researchers identify molecules with interesting anti-clotting properties
11. Medical Services Gets Significant Interest in Its Dual VScan Test Kit
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/29/2016)... ... ... On Tuesday, April 26, 2016 members of the HomeTown Health network, a network ... on SB 258, the “Rural Health Care Relief” Bill. , The bill, which was ... individuals and corporations which donate directly to a “rural hospital” in Georgia, and goes ...
(Date:4/29/2016)... ... April 29, 2016 , ... Coast Dental Fort Stewart is celebrating its ... location in the Exchange Furniture Mall at 112 Vilseck Road in Fort Stewart. There ... TV. Plus attendees will have the opportunity to meet general dentists Thomas Richards, DDS, ...
(Date:4/29/2016)... New York, NY (PRWEB) , ... April 29, ... ... integrated manufacturer and engineer of patented products, announces the Gyrociser, an exercise invention ... industry is worth $2 billion," says Scott Cooper, CEO and Creative Director of ...
(Date:4/29/2016)... ... April 29, 2016 , ... Reltok Nasal Products proudly announces that ... head and neck/ear, nose and throat specialty, has added the KOTLER NASAL AIRWAY™ to ... AIRWAY™ is a newly patented safety device secured by nasal surgeons onto the ...
(Date:4/29/2016)... PLAINSBORO, N.J. (PRWEB) , ... April 29, 2016 ... ... consumer digital and print media enterprise focused entirely on patients with cancer, today ... Mirage, California, was chosen as the 2016 CURE® Extraordinary Healer® for Oncology ...
Breaking Medicine News(10 mins):
(Date:4/27/2016)... NEW YORK , April 27, 2016 /PRNewswire/ ... OASM ), a developer of a new ... today announced positive overall survival results for Paclical/Apealea ... total of 789 patients with epithelial ovarian cancer. ... treatment groups: Paclical/Apealea in combination with carboplatin versus ...
(Date:4/27/2016)... , April 27, 2016 ... announced the launch of a Phase 2 clinical study ... hearing in patients undergoing cochlear implantation (CI) surgery. This ... patients in Germany and ... the middle ear at the time of surgery. "Despite ...
(Date:4/26/2016)... April 26, 2016 US demand for ... expand 4.9 percent annually to $27.6 billion in ... facilities to decrease rates of healthcare-associated infections (HAIs) ... equipment, and services.  Although declining, the overall rate ... targeted levels set by the CDC.  Recent statistics ...
Breaking Medicine Technology: