CFPB will delay QM rule’s compliance date

The Consumer Financial Protection Bureau plans to delay the compliance date of the Qualified Mortgage rule and may revoke or amend a separate rule that created a new category of “seasoned” QM loans.

Acting CFPB Director Dave Uejio said on Tuesday that the CFPB will issue a proposed rule soon to delay the July 1 mandatory compliance date for the general QM rule. The bureau said it also will weigh at a later date whether to initiate another rulemaking “to reconsider other aspects of the QM rule.”

The changes are not a surprise since Uejio said earlier this month that the CFPB would reconsider any rules implemented under the Trump administration that had not yet gone into effect. The underwriting rule was created after the 2008 financial crisis to set parameters, such as a 43% debt-to-income ratio, that defined loans as safe, and protected lenders using such criteria from legal liability.

“An extension of the compliance deadline would allow lenders more time in which they could make QM loans based on a debt-to-income ratio or whether the loans are eligible for sale to Fannie Mae or Freddie Mac, and not just a pricing cut off,” Uejio said in a blog post.

Still, mortgage lenders may be feeling some whiplash given that former CFPB Director Kathy Kraninger, a Trump appointee, just proposed an overhaul in June to replace the 43% DTI ratio with a pricing threshold for loans to be considered safe, qualified mortgages.

In August, Kraninger also proposed a rule that would allow QM loans held on a lender’s balance sheet for 36 months — or “seasoned loans — to become eligible for so-called QM status, based on a borrower’s past three years of payment history.

The QM rule has been the subject of intense debate since 2014 when loans backed by Fannie Mae and Freddie Mac were given an exemption from the QM rule’s 43% DTI requirement. The exemption for the government-sponsored enterprises — known as the GSE “patch” — was supposed to expire in January. The bureau had previously set a March 1 effective date for both the QM rule and seasoned QM rule with a mandatory compliance date of July 1.

Source: nationalmortgagenews.com

Can closing costs change on the closing disclosure?

What to expect on your Closing Disclosure

The Closing Disclosure (CD) is one of the most important loan documents you’ll receive during the mortgage process.

You should read the CD very carefully, as it lists the final terms and closing costs for your home loan.

Many of these numbers will be the same as what you’ve seen before, but some elements on the CD may have changed since you initially applied. Certain closing costs may even increase.

Here’s what you should look out for when you read your CD, and how to know if the numbers you’re seeing are correct.

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What is a Closing Disclosure?

The Closing Disclosure is a 5-page document your lender or mortgage broker will provide at least three days prior to your closing date.

Also known as a ‘CD,’ the Closing Disclosure is a standard document that all lenders are required to provide all mortgage applicants. It lists the final terms, mortgage rate, and closing costs for your new loan.

The counterpart to the CD is the Loan Estimate (LE), a document you receive after applying which outlines the initial terms and costs of the mortgage you’ve been approved for.

Today’s standard Closing Disclosure replaced the HUD-1 settlement statement as the final document that mortgage borrowers are given before signing closing documents.

What information is on the Closing Disclosure?

As you review the Closing Disclosure, you’ll find important details about your mortgage loan.

Many of the key figures appear on the first page of the disclosure form, including:

  • Loan information — Your loan length, loan product (e.g. conventional or FHA), interest rate type (fixed or adjustable), and loan purpose (purchase or refinance)
  • Loan terms — This is where you’ll find your loan amount, interest rate, principal and interest (P&I) payment, and whether or not the loan comes with a prepayment penalty or balloon payment (most don’t)
  • Projected payments — Here you’ll find a breakdown of your full monthly mortgage payment, which includes principal and interest as well as mortgage insurance, property taxes, homeowners insurance premiums, and (if applicable) HOA dues
  • Costs at closing — Lists your total closing costs as well as ‘cash to close,’ which is the total amount you’ll need to pay on closing day including your down payment

You’ll also find a breakdown of your longer-term loan costs — including the annual percentage rate (APR) and total interest cost — on page 5 of the CD.

Generally, the terms and closing costs listed on your Closing Disclosure should very closely match the ones listed on the Loan Estimate you received after you applied.

In fact, there are some items that cannot change on the CD by law. But some closing costs can increase before closing.

It’s important to understand which items can and can’t change on the CD — and by how much — so you know you’re getting the deal you were promised before you sign off on the mortgage.

Here’s what you should know.

What can change on the Closing Disclosure?

According to TRID — the set of fair lending rules that regulates Loan Estimates and Closing Disclosures — some of the costs for your loan may not increase at closing. Others may change, but only by 10 percent or less. Some other closing costs can increase without limit.

Closing costs that cannot change

Certain fees may not change. These fall into the “zero tolerance” category for any increases whatsoever. Such costs include:

  • Lender fees
  • Appraisal fees
  • Transfer taxes

Lender fees, including origination charges and underwriting fees, make up a big chunk of your closing costs.

These are not allowed to change, so if you see a difference between lender fees on your LE and CD, that should raise a red flag.

Closing costs that can increase 10% or less

Unless there is a “change in circumstances,” some closing costs may be permitted to change as long as the total does not increase by more than 10 percent.

These items include recording fees, and fees for lender-required third-party services you’ve chosen, such as:

  • Title search
  • Lender’s title insurance
  • Survey fee
  • Pest inspection fee

Note, the cost of these items cannot change at all if the service provider is an affiliate of your mortgage lender.

Closing costs that can increase by any amount

Certain closing costs are not controlled by the lender, nor do they go to the lender. They can increase by any amount at any time. These include:

  • Prepaid interest
  • Prepaid property taxes
  • Prepaid homeowners insurance premiums
  • Initial escrow account deposits
  • Real estate-related fees

Can my interest rate change before closing?

Unless your interest rate is locked when you receive your Loan Estimate, it can change before closing.

Your rate can change even if it has been locked, too.

For instance, if your credit score has fallen since applying, or if you don’t end up closing during the specified rate-lock timeframe, your rate can change.

Or, if your mortgage has a ‘float down option,’ you might pay an additional closing cost for the chance to lower your rate if current interest rates fall before closing.

What happens when closing costs change?

Closing costs can change dramatically if your application has a “changed circumstance” — meaning you no longer qualify for, or no longer want, the loan you originally planned on.

If your loan application has changed circumstances, you will likely receive a revised Loan Estimate and later, a revised Closing Disclosure.

A changed circumstance could be for a number of reasons. For example:

  • You or your lender decide on a different loan program
  • You make a different down payment
  • Your home under appraises
  • Your credit score or credit report changes
  • Your income or employment can’t be verified as expected

If closing costs have increased more than the allowed limits and your application has not had a “changed circumstance,” you are entitled to a refund of the amount above the allowable limits.

If a changed circumstance is required, the Closing Disclosure will need to be redone.

This could delay your closing, so you’ll want to contact your lender to make any of the necessary changes immediately.

How to use your Loan Estimate to check the Closing Disclosure

When you started your loan, your lender issued a Loan Estimate.

The Loan Estimate (LE) is another product of the TRID rule. This disclosure replaced what was formerly known as the ‘Good Faith Estimate’ or GFE.

Your Loan Estimate highlights the most important features of the loan and makes it easier to compare different lenders.

The numbers on your LE and CD should be similar, but might not be exactly the same. The Loan Estimate shows what you may pay. The Closing Disclosure shows what you will pay.

To make an accurate comparison between your LE and CD and make sure you’re getting the mortgage you were offered, pay attention to a few key points:

  • Make sure your loan type, loan term, and monthly payment are what you expect
  • Check that your interest rate is the same one you locked in, provided you’re closing within the rate lock period
  • Make sure the closing costs that cannot change on the CD exactly match what’s shown on the LE
  • Make sure the closing costs that can change have only increased within the 10% allowable limit, if applicable (see above)

You should also look closely at the more mundane details on your CD. Even small errors, such as the misspelling of your name or address, can create significant problems later on.

Look at your CD with a close eye and if anything seems amiss, contact your lender immediately to get the issue sorted out.

For a full breakdown of the Closing Disclosure form and tips on how to read each page, see this example from the Consumer Financial Protection Bureau (CFPB).

Why the Closing Disclosure is important

Thanks to TRID, also known as the “Know Before You Owe” rule, all lenders are required to issue a Closing Disclosure three business days prior to closing.

This important disclosure was meant to protect mortgage borrowers by preventing surprises at closing.

When you receive your Closing Disclosure, be sure to read each item on the disclosure. Take note of whether there have been any changes since you received the Loan Estimate.

Do you understand the fees and have any of them changed? Do you have an escrow account and do you understand how it works?

If you’re uncertain, ask your lender to help you go over everything.

You should fully understand the terms and cost of a home loan before signing on — and you should be sure you’re getting the deal you expected.

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Source: themortgagereports.com

5 Tips to Hedge Against Inflation

To achieve financial freedom and grow wealth over long periods of time, it’s vital to understand the concept of inflation.

Inflation refers to the ever-increasing price of goods and services as measured against a particular currency. The purchasing power of a currency depreciates as a result of rising prices. Put differently, a rising rate of inflation equates to a decreasing value of a currency.

Inflation is most commonly measured by the Consumer Price Index (CPI) , which averages the national cost of many consumer items such as food, housing, healthcare, and more.

The opposite of inflation is deflation, which happens when prices fall. During deflation, cash becomes the most valuable asset because it can buy more. During inflation, other assets become more valuable than cash because it takes more currency to purchase them.

The key question to examine is: What assets perform the best during inflationary times?

Federal Reserve try to control inflation through monetary policy. Sometimes their policies can create inflation in financial assets, like quantitative easing has been said to do.

5 Tips for Hedging Against Inflation

The concept of inflation seems simple enough. But what might be some of the best ways investors can protect themselves?

There are a number of different strategies investors use to hedge against inflation. The common denominators tend to be hard assets with a limited supply and financial assets that tend to see large capital inflows during times of currency devaluation and rising prices.

Here are five tips that may help investors hedge against inflation.

1. Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust (REIT) is a company that deals in real estate, either through owning, financing, or operating a group of properties. Through buying shares of a REIT, investors can gain exposure to the assets that the company owns or manages.

REITs are income-producing assets, like dividend-yielding stocks. They pay a dividend to investors who hold shares. In fact, REITs are required by law to distribute 90% of their income to investors.

Holding REITs in a portfolio might make sense for some investors as a potential inflation hedge because they are tied to a hard asset—real estate. During times of high inflation, hard assets tend to rise in value against their local currencies because their supply is limited. There will be an ever-increasing number of dollars (or euros, or yen, etc.) chasing a fixed number of hard assets, so the price of those things will tend to go up.

Owning physical real estate—like a home, commercial complex, or rental property—also works as an inflation hedge. But most investors can’t afford to purchase or don’t care to manage such properties. Holding shares of a REIT provides a much easier way to get exposure to real estate.

2. Bonds and Equities

The recurring theme regarding inflation hedges is that the price of everything goes up. What investors are generally concerned with is choosing the assets that go up in price the fastest, with the greatest possible return.

In some cases, it might be that stocks and bonds very quickly rise very high in price. But in an economy that sees hyperinflation, those holding cash won’t see their investment, i.e., cash, have the purchasing power it may have once had.

In such a scenario, the specific securities aren’t as important as making sure that capital gets allocated to stocks or bonds in some amount, instead of holding all capital in cash.

3. Exchange-Traded Funds

An exchange-traded fund (ETF) that tracks a particular stock index or group of investment types is another way to get exposure to assets that are likely to increase in value during times of inflation and can also be a strategy to maximize diversification in an investor’s portfolio. ETFs are generally passive investments, which may make them a good fit for those who are new to investing or want to take a more hands-off approach to investing. Since they are considered a diversified investment, they may be a good hedge against inflation.

4. Gold and Gold Mining Stocks

For thousands of years, humans have used gold as a store of value. Although the price of gold can be somewhat volatile in the short term, few assets have maintained their purchasing power as well as gold in the long term. Like real estate, gold is a hard asset with limited supply.

Still, the question of “is gold a hedge against inflation?” has different answers depending on whom you ask. Some critics claim that because there are other variables involved and the price of gold doesn’t always track inflation exactly, that it is not a good inflation hedge. And there might be some circumstances under which this holds true.

During short periods of rapid inflation, however, there’s no question that the price of gold rises sharply. Consider the following:

•  During the time between 1970 and 1974, for example, the price of gold against the US dollar surged from $240 to more than $900 for a gain of 73%.
•  During and after the recession of 2007 to 2009, the price of gold doubled from less than $1,000 in November 2008, to $2,000 in August 2011.
•  In 2019 and 2020, gold has hit all-time record highs against many different fiat currencies.

Investors seeking to add gold to their portfolio have a variety of options. Physical gold coins and bars might be the most obvious example, although these are difficult to obtain and store safely.

5. Better Understanding Inflation in the Market

Ultimately, no assets are 100% protected from inflation, but some investments might be better than others for some investors. Understanding how inflation affects investments is the beginning of growing wealth over time and achieving financial goals. Still have questions about hedging investments against inflation? SoFi credentialed financial planners are available to answer questions about investments at no additional cost to members.

Downloading and using the stock trading app can be a helpful tool for investors who want to stay up to date with how their investments are doing or keeping an eye on the market in general.

Learn more about how the SoFi app can be a useful tool to reach your investment goals.



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The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

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Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.

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Guide to Zcash Cryptocurrency

Zcash is a potentially private cryptocurrency that offers unique “shielded” features. The set-up allows for addresses and amounts in a Zcash transaction to be encrypted on the blockchain. Here’s a guide to its privacy features, price performance, technology and history.

What Is Zcash?

Zcash crypto falls under the category of cryptocurrencies known as “privacy coins,” or different types of cryptocurrency that make it hard for outside observers to detect details of the coins’ movements.

Zcash is basically a bitcoin clone with one key difference – the ability for shielded transactions, as mentioned. Zcash relies on a technology known as zk-SNARKS to hide the particulars of Zcash wallet activity.

Zcash transactions are not private by default. For users seeking privacy, the “shielded” feature must be turned on to prevent the transaction from appearing on the public Zcash blockchain.

Zcash Price and Performance

Zcash has soared more than 400% since the end of 2019 to $146.38 in mid-February. Its market cap is $1.62 billion, making it the 47th biggest cryptocurrency market, according to data from CoinMarketCap. Zcash has the third-largest market cap of any privacy coin (with Monero being #1 and DASH being #2).

Zcash Privacy

Zcash was created in response to Bitcoin‘s lack of anonymity. Activity on the Bitcoin blockchain and most other blockchains is transparent. Anyone can see everything that has ever happened on a public blockchain. The details of each transaction, including the parties sending and receiving coins, the time of the exchange, and the amount of value exchanged, are all public knowledge.

Zcash functions differently than Bitcoin in the sense that Zcash activity can be “shielded,” or hidden from the public, so users can transact privately. But if no one can see the details of a transaction, how can they be sure that it even happened? That’s where the privacy tech behind Zcash known as zk-SNARKS comes in.

Zcash is the first large-scale, real-world implementation of a privacy technology called zk-SNARKS. This tech allows for shielded Zcash transactions to be fully encrypted (private) while at the same time being validated under the network’s consensus rules (so everyone knows they really happened).

How “Shielding” Works

Zk-SNARK stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.” This is a way of sharing data that allows one party to prove to another that they have specific information without revealing what that information is, and without requiring any interaction between the parties.

The exact details of how zk-SNARKs work and how they are applied to the Zcash blockchain are quite technical. Interested readers can reference the Zcash website for all of the intricate workings of this type of encryption technology.

While some people believe this tech offers the best, most comprehensive solution to the issue of private crypto transactions, others have criticized the security of a coin like Zcash.

The fact that the encryption technology used is so new and that the coin was launched using an unorthodox “ceremony” (more on this later) are key points of contention for some crypto observers. On top of that, most Zcash isn’t even private.

As mentioned earlier, transactions made on the Zcash blockchain are not private by default. For the currency to be used privately, a transaction must be “shielded.”

The vast majority of Zcash transactions are not shielded (as of April 2020, only 6% of the Zcash network had been using fully shielded transactions). This could be due to the fact that most wallets and exchanges use public Zcash addresses by default, something many users might not be aware of.

Types of Zcash Transactions

There are four different types of transactions that can be made on the Zcash blockchain. They are:

•  Private
•  Deshielding
•  Shielding
•  Public

Zcash addresses begin with either a Z or a T. Those beginning with a Z are private addresses, and those beginning with a T are transparent. Using different combinations of these two types of addresses allows for the four specific types of transactions.

In a private transaction (Z-to-Z) will be visible on the public blockchain. There’s proof that it occurred and the necessary network fees were paid. The specific details like the transaction amount and addresses involved, however, are encrypted and can’t be seen by the public.

A public transaction (T-to-T) works in the same way that a typical Bitcoin transaction works – everything can be seen on the public blockchain, including the sender, receiver, and amount transacted.

The Zcash website notes that most exchanges and wallets today use T-addresses by default, although more are allegedly moving to shielded addresses over time.

The other two types of transactions involve sending funds between T and Z addresses. In other words, either sending funds from a private address to a public one (Z-to-T, or Deshielding), or sending funds from a public address to a private one (T-to-Z, or Shielding).

Zcash History

Zcash cryptocurrency launched in 2016. The coin was forked from the original Bitcoin code, so both are minable proof-of-work cryptocurrencies that have a hard supply cap of 21 million. The block reward for Zcash also gets cut in half every four years or so to keep the currency deflationary by limiting supply, just like bitcoin.

Zcash has its roots in a 2013 publication called the Zerocoin white paper, which was written by professors Eli Ben-Sasson and Matthew Green. They saw the design of Bitcoin as being a threat to user privacy, and offered their own solutions in response.

But Zerocoin was designed for Bitcoin, meaning Bitcoin developers would have had to implement a lot of complex changes to the Bitcoin blockchain technology to make Zerocoin work. This led to the project being shelved for a time.

Then, in 2015, a cryptographer named Zooko Wilcox created a startup to discover ways that the Zerocoin concept might be successfully implemented in a new cryptocurrency. In 2016, Zcash was announced, and the coin launched in October of that year.

Launch of Zcash

The launch of Zcash is a focal point of many criticisms against the privacy coin. To make its new type of cryptography workable, the Zcash blockchain had to be created using something known as the “Zcash ceremony.”

This “ceremony” involved people from around the world collaborating to create what amounts to a master public key for the blockchain using pieces of a private key. Those involved were instructed to destroy the data they used so that it couldn’t be taken advantage of by someone else in the future, who could potentially use it to compromise Zcash.

Of course, no one has any way to verify that those involved actually destroyed the data they used in this ceremony, and no one can verify that Zcash was created in the way it claims to have been created.

Today, Zcash is operated by the Electric Coin Company with Zooko Wilcox as its CEO. The company employs a team of cryptographers to continue developing the Zcash blockchain. There is also a non-profit organization known as the Zcash Foundation that helps support this work. Both groups are funded in part by the issuance of new Zcash (ZEC) tokens.

Is Zcash a Good Investment?

Privacy coins in particular have a very uncertain future. Coins like Monero, Zcash, and DASH were delisted from the Bittrex exchange at the start of 2021. Because many people associate them with illicit activity, privacy coins could see their use restricted in various ways.

Exchanges could continue to delist coins with privacy features or regulatory authorities could seek to punish anyone who deals with them through new crypto regulations, perhaps claiming that people use privacy coins to avoid paying taxes on crypto, for example.

Many altcoins have gone to zero over the years, so that possibility also can’t be ruled out.

How to Buy Zcash

Some U.S. exchanges offer Zcash on their platform. Here’s a step-by-step guide on how to buy and trade it:

1. Sign up for an account with a cryptocurrency exchange that offers Zcash.
2. Verify your account. This may involve providing documents that confirm your identity and address.
3. Deposit fiat currency or digital money into your account.
4. Buy Zcash with the deposited funds.
5. Withdraw Zcash into your hot or cold wallet.

The Takeaway

Zcash is a privacy coin that allows for completely private or “shielded” transactions. It is the first practical implementation of the zk-SNARK encryption technology. The vast majority of transactions made on the Zcash blockchain are not private and function in the same way as Bitcoin transactions because Zcash was forked from the original Bitcoin code.

SoFi Invest gives investors the tools they need to trade cryptocurrency, stocks, and ETFs. Learn the basics of investing in crypto firsthand by opening an Invest account today.

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Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.
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The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
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What is a 51% Attack?

A 51% attack is when a single cryptocurrency miner or group of miners gains control of more than 50% of a network’s blockchain. Such attacks are one of the most significant threats for people who use and buy cryptocurrencies.

The 51% attack scenario is rare, largely because of the logistics, hardware and costs required to carry one out. But a successful block attack could have far-reaching consequences for the cryptocurrency market and those who invest in it.

Cryptocurrency investing can be potentially lucrative but it involves a higher degree of risk compared with stock or bond investing. If an investor is considering adding digital currencies to their portfolio, it’s important to understand the implications of a 51% attack.

Background on 51% Attacks

A 51% attack is an attack on a blockchain, which is a type of digital database in ledger form. With blockchain technology, information is collected together in groups or blocks and linked together to create a chain of data. In cryptocurrency trading, blockchain is used to record approved transfers of digital currencies and the mining of crypto coins or tokens.

With Bitcoin for example, “miners” can attempt to add blocks to the chain by solving mathematical problems through the use of a mining machine. These machines are essentially a network of computers. If miners succeed in adding a block to the chain, they receive Bitcoins in return.

The speed at which all the mining machines within the network operate is the Bitcoin hashrate. A good hashrate can help gauge the health of the network.

A 51% attack occurs when one or more miners takes control of more than 50% of a network’s mining power, computing power or hashrate. If a 51 percent attack is successful, the miners responsible essentially control the network and certain transactions that occur within it.

How a 51% Attack Works

When a cryptocurrency transaction takes place, whether it involves Bitcoin or another digital currency, newly mined blocks must be validated by a consensus of nodes or computers attached to the network. Once this validation occurs, the block can be added to the chain.

The blockchain contains a record of all transactions that anyone can view at any time. This system of record keeping is decentralized, meaning no single person or entity has control over it. Different nodes or computer systems work together to mine so the hashrate for a particular network is also decentralized.

When a majority of the hashrate is controlled by one or more miners in a 51% attack, however, the cryptocurrency network is disrupted. Those responsible for a 51% attack would then be able to:

•  Exclude new transactions from being recorded
•  Modify the ordering of transactions
•  Prevent transactions from being validated or confirmed
•  Block other miners from mining coins or tokens within the network
•  Reverse transactions to double-spend coins

All of these side effects of a block attack can be problematic for cryptocurrency investors and those who accept digital currencies as a form of payment.

For example, a double-spend scenario would allow someone to pay for something using cryptocurrency, then reverse the transaction after the fact. They’d effectively be able to keep whatever they purchased along with the cryptocurrency used in the transaction, bilking the seller.

What a 51% Attack Means for Cryptocurrency Investors

A 51% attack isn’t a common occurrence but it’s not something that can be brushed off. For cryptocurrency investors, the biggest risk associated with a 51% attack may be the devaluation of a particular digital currency.

If a cryptocurrency is subject to frequent block attacks, that could cause investors to lose confidence in the market. Such an event could cause the price of the cryptocurrency to collapse.

The good news is that there are limitations to what a miner who stages a 51% attack can do. For example, someone carrying out a block attack wouldn’t be able to:

•  Reverse transactions made by other people
•  Alter the number of coins or tokens generated by a block
•  Create new coins or tokens from nothing
•  Transact with coins or tokens that don’t belong to them

Investors may be able to insulate themselves against the possibility of a 51% percent attack by investing in larger, more established cryptocurrency networks versus smaller ones. The larger a blockchain grows, the more difficult it becomes for a rogue miners to carry out an attack on it. Smaller networks, on the other hand, may be more vulnerable to a block attack.

Is Cryptocurrency Investing a Good Idea?

Cryptocurrencies can help boost portfolio diversification, but there are certain risks to be aware of. Current cryptocurrency rules and regulations offer some protections to investors, but on the whole, the market is far less regulated than stocks, mutual funds and other securities. Here are some potential upsides and downsides of investing in digital currencies.

Pros of Cryptocurrency Investing

•  Bigger rewards. Compared with stocks and other securities, cryptocurrency investing could yield much higher returns. In 2020, for example, Bitcoin surged 159% higher.
•  Liquidity. Liquidity measures how easily an asset can be converted to cash or its equivalent. Popular cryptocurrencies like bitcoin are more liquid assets, which may appeal to investors focused on short-term trading strategies.
•  Transparency. Blockchain networks offer virtually complete transparency to investors, as new transactions are on record for everyone to see. That can make cryptocurrency a much more straightforward investment compared with more opaque investments like a hedge fund or a real estate investment trust (REIT).

Cons of Cryptocurrency Investing

•  Volatility. Cryptocurrencies can be extremely volatile, with wide fluctuations in price movements. That volatility could put an investor at greater risk of losing money on digital currency investments.
•  Difficult to understand. Learning the ins and outs of cryptocurrency trading, blockchain technology, and digital coin mining can be more complicated than learning how a stock, ETF or index fund works. That could lessen its appeal for a newer investor who’s just learning the market.
•  Not hands-off. If an investor is leaning towards a passive investment strategy, cryptocurrency may not be the best fit. Trading cryptocurrencies generally focuses on the short-term, making it more suited for active traders.

If an investor is still on the fence, they can consider taking SoFi’s crypto quiz to determine how much they already know about this market.

The Takeaway

Cryptocurrency investing may appeal to an investor if they’re comfortable taking more risk to pursue higher returns. If an investor is new to cryptocurrency trading, the prospect of a 51% attack might seem intimidating. Understanding how they work and the likelihood of one occurring can help them feel more confident.

If an investor is ready to start trading Bitcoin, Ethereum, and Litecoin, SoFi Invest can help. Members can trade cryptocurrencies 24/7, starting with as little as $10. The SoFi app allows users to manage their account from anywhere.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
SOIN21049

Source: sofi.com

What is Dash Cryptocurrency?

Cryptocurrency can sometimes be confusing to beginners because there are so many different cryptocurrency types with different purposes. Some cryptocurrencies are designed to act as fast digital cash, others as private digital cash, some as interest-bearing assets, others as cross-currency exchanges, and more. (Beginners can check out our comprehensive crypto guide for more details.)

Bitcoin is widely known as the premier cryptocurrency in large part because it was the first, yet altcoins such as Dash take existing intuitive technology and make other improvements upon it separately. Some of Bitcoin’s biggest flaws are precisely Dash’s strengths—including transaction speeds, fees, and privacy.

What is Dash?

Bitcoin fork, a split in the Bitcoin blockchain initiated by a group of Bitcoin miners with different views on certain network rules. Darkcoin was originally designed to uncompromisingly ensure user privacy and anonymity, as described in its 2014 whitepaper .

However, the next year the project was redesigned with other features in mind and rebranded as “Dash,” a mash-up of the phrase “digital cash.” As the name implies, the Dash coin is intended as a medium of exchange and has since shifted its primary focus to faster and less expensive transactions while maintaining its strong encryption properties. Since the 2015 rebranding, Dash has grown to become a popular altcoin for investors buying crypto and consistently ranks among the top 25 cryptocurrencies by market cap.

How Does Dash Work?

Similar to Ethereum’s ambitions, Dash uses a modification of the Proof of Stake algorithm known as X11. Proof of Stake is an alternative consensus mechanism to Bitcoin’s Proof of Work that replaces energy-intensive cryptocurrency miners with validators that verify transactions based on how many tokens they hold and stake on the network. In addition to confirming blocks, they also provide payment and privacy services on the network.

This model is viewed as less risky because it makes a potential network attack less rewarding than compensation for validating transactions which secure the network. Dash validators, or “Masternodes,” are full nodes that hold a minimum stake (or bond of collateral) of 1,000 DASH coins that perform network services and earn a return on their staked investment. Masternode services include private transactions (PrivateSend), Instant transactions (InstantSend), and the network’s governance and treasury systems. Dash’s model also addresses transaction scalability issues by reducing the amount of nodes required to approve a transaction to a manageable number.

Dash maintains a harmonious self-funding governance model by splitting block rewards between three critical stakeholders: Masternodes (45%), Miners (45%), and Treasury (10%). The first two are rewarded the bulk of block rewards for providing essential services and voting on development directions for the network, while the remaining 10% accrues to the Treasury to actually finance the voted-on future project developments.

What is Dash Used For?

Dash is intended to be used for daily transactions between peers. While Dash’s use is scattered, it is more concentrated in a few economically-distressed countries that are experimenting with cryptocurrencies.

Following the hyperinflation of the Venezuelan Bolivar, the South American country’s government passed an order instructing state-run agencies to accept any cryptocurrency for services. Dash has gained early momentum in the country after a series of popular conferences and educational efforts were made introducing crypto to the community as a replacement for devalued and unreliable local currency. Since then, acceptance of Dash in Venezuela has grown as thousands of merchants in the country, including Burger King, have enabled payments using Dash among other cryptos.

Dash adoption and use has spread in Latin America, also spurring bouts of growth in Brazil and interest from nearby Cabimas and Mexico, other countries with distressed economies and weak currencies. This comes as a result of local advocacy programs and merchant point-of-sale terminals integrating with Dash.

Is Dash Better than Bitcoin?

Some people prefer Dash for its fast speed, lower fees, and increased privacy. These properties give Dash technical advantages over Bitcoin’s current abilities as a medium of exchange.

Faster Speeds

One of the drawbacks to using a layer-one cryptocurrency network is that some network efficiency is sacrificed for decentralization. Many cryptocurrencies, like Bitcoin, still operate on the project’s original iteration which is designed for functionality now and scalability later. This affects the network’s speed, particularly the rate at which funds are transferred, confirmed, and received in recipients’ accounts. Bitcoin is the model for slow transaction times, sometimes taking hours for a transaction to be confirmed, especially during market congestion.

With Dash, most transactions are confirmed in seconds. As the name implies, Dash coins are meant to be used as a medium of exchange. Dash’s average block time is roughly two and a half minutes per transaction; nearly four times faster transactions than Bitcoin’s 10-minute block time. Dash users are free to send and receive transactions normally for a miniscule fee. Alternatively, Dash also instituted the InstantSend feature which allows masternodes to confirm transactions nearly instantly for an extra fee. With nearly instant transaction confirmations, Dash is among the fastest and most private cryptocurrency mediums of exchange, surpassing that of Bitcoin, Ethereum, Litecoin, and XRP.

There are other cryptocurrencies that also provide fast transaction confirmations like Dash, however only some of them lock down transactions after they are completed, thus disabling the same funds from being spent on two separate transactions. Networks that do not lock down confirmed transactions are technically vulnerable to a compromising phenomenon known as double spending. Double spending is a potential technical flaw in a digital currency network where the same single asset is spent more than once. InstantSend also solves the double spending issue by holding the amount of funds sent without having to wait for a block confirmation to officially confirm the transaction.

Lower Fees

In addition to faster block times, Dash transactions typically cost less than $0.01. Dash’s faster speeds and lower fees make it a far more efficient medium of exchange than cryptocurrencies like Bitcoin.

Privacy

One of the concerns with Bitcoin, according to privacy advocates, is its public ledger. All transactions and details on the Bitcoin blockchain such as sender, recipient, date, amount, and even previous Bitcoin addresses and transactions associated with each Bitcoin are publicly viewable by anyone and cannot be censored, modified, or deleted. While this creates a system of pseudo-honesty and transparency, users seeking privacy must look elsewhere.

Dash offers users a service known as “PrivateSend,” a layer of privacy and anonymity provided by Masternodes through a process known as automatic coinjoin mixing. Coinjoin mixing is a trustless privacy method that repackages multiple payments from multiple senders into a single transaction to obfuscate transaction details from outside parties.

Anonymizing Dash cryptocurrency transactions prevents them from being traced and users’ identities from being revealed, thus potentially providing an opportunity for users seeking to avoid paying taxes on crypto. Dash’s anonymizing privacy features are revered by users but scrutinized by regulators and centralized exchanges who must abide by strict cryptocurrency regulations.

Dash Crypto: Pros and Cons

When it comes to crypto, pros and cons can vary depending on what a user intends to do with the currency—whether interest-bearing assets or fast digital cash, for example.

Beyond the specific advantages Dash has over Bitcoin (outlined above), this cryptocurrency has pros and cons any potential user should be aware of.

Pros

•  Widely Accessible: Dash is available to buy or sell on most crypto exchanges in most countries with few exceptions. Being that Dash is a relatively larger-cap token, it is fairly ubiquitous—except for exchanges unfriendly to privacy-centric cryptocurrencies.
•  Efficient medium of exchange: Faster transaction speeds and cheaper fees make Dash a top-performing medium of exchange, especially when compared to wait times and fees experienced by users of marquee tokens like Bitcoin and Ethereum.
•  Private and anonymous: Darkcoin’s original privacy properties were maintained in Dash, autonomously obscuring transactions’ origins, senders, and other details by grouping transactions together to morph into a single new transaction with no similarities to the original senders.
•  Validators can stake DASH coins to earn passive block rewards: Validators, or nodes, attribute personally-owned DASH as part of the consensus mechanism to receive monetary compensation for providing crucial services to process transactions and secure the network.

Cons

•  Not as ubiquitous as mega-cap cryptos (e.g. Bitcoin, Ethereum): Whereas crypto is synonymous with Bitcoin and sometimes Ethereum, Dash doesn’t have the same caliber network effect and is not widely known by the average investor.
•  Masternodes are slightly more centralized than other cryptos: Owning and running a masternode requires staking 1,000 DASH, and there are currently more than 5,000 masternodes. However, it’s difficult to determine whether some people have multiple masternodes and thus centrally control a larger percentage of the network.
•  No academic or institution backing: Dash is entirely self-funded through its technical design and does not rely on nor receive support from prominent academics or institutions for advisement, technical support, or funding.
•  Strong competition (Bitcoin Cash, Litecoin, Monero, etc.): Currencies have been battling for the title of reserve currency for hundreds of years. The medium of exchange use case is saturated to say the least, and of the thousands of cryptocurrencies (and growing), Dash has to compete with other functional and efficient use cases with similar properties such as Bitcoin Cash, Litecoin, and others.

How Do You Invest in Dash?

6 things to know before investing in crypto.

The Takeaway

As cryptocurrency evolves, new projects are conceived and even spawn off of other projects in what’s known as a “fork.” One such fork is Dash, a 2015 offshoot of Bitcoin with many similarities but distinct improvements in critical areas that define money’s essence. Bitcoin historically dominates the crypto market share despite technical limitations, whereas projects like Dash have a smaller network effect and thus market cap despite superior real-world utility.

Regardless of your crypto project of choice, the vast number of cryptocurrency projects and tokens are showing a rapidly growing and maturing space that has already caused ripples in the investing world. As cryptocurrencies like Dash continue to become more mainstream, investors may look to capitalize on this new industry’s growth and adoption.

For investors looking to dip their toes in cryptocurrency investing without the responsibility of self-custodying their funds, SoFi Invest® helps beginners get started and learn along the way. Members can invest in Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic.

Find out how to invest in cryptocurrency with SoFi Invest.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.

SOIN21015

Source: sofi.com

New debt collector rules you should know about – Lexington Law

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

In October 2020, the Consumer Financial Protection Bureau (CFPB) announced  a new rule for the Fair Debt Collection Practices Act (FDCPA), which is in place to stop debt collectors from engaging in unfair practices. Consumers must understand the new debt collector rules under the FDCPA to know their rights and protect themselves. 

Your rights under the FDCPA

Approximately 28 percent of Americans with a credit report have had debt in collections, according to a 2019 report by the CFPB. Having a debt collector contact you repeatedly can feel overwhelming and intimidating. The government protects consumers by placing explicit restrictions on debt collectors under the FDCPA. By having a clear understanding of your rights, you’ll know when a debt collector is violating the law. 

The FDCPA outlines the methods a debt collector can and cannot use to contact you. Some of the previously existing rules included:

  • A debt collector cannot contact you at inconvenient times and places, including at work if they are told you’re not allowed to receive calls there. If a debt collector does contact you at work, you have the right to tell them to stop and they cannot continue calling your workplace. Additionally, debt collectors cannot call before 8 a.m. or past 9 p.m. unless you specifically say these times are okay. 
  • Debt collectors generally cannot tell others about your debt. They can only disclose your debt to yourself, your spouse, and your attorney. 
  • However, a debt collector can contact other people in an attempt to find your address, phone number or place of work. They can usually only contact these people one time. 
  • Debt collectors aren’t allowed to threaten you, use obscene language or harass you with phone calls. 
  • Debt collectors can’t tell you lies about your debt or the consequences of not paying your debt.
  • Debt collectors are not allowed to collect more than the original debt owed (like interest, fees, or other charges) unless the original contract or state law allows it.
  • If you don’t believe the debt is correct, you’re allowed to ask for a debt verification letter. After making this request, the debt collector cannot continue to pursue you until they have shown you written verification of the debt. 

It’s important to note that these rules only apply to third-party debt collectors—when a debt has been sold to another party—not the original creditor. If you have a debt outstanding with your creditor, it’s best to start discussions with them before the debt is sent off to collections. 

Updates to the FDCPA

The FDCPA has had many amendments since its original enactment in 1978. The rule was released in October 2020 and will likely go into effect in fall of 2021. 

New methods of communication

Since the FDCPA was originally created before electronic communications existed, no parameters had been set for contacting consumers via texting and social media apps. The October 2020 ruling clarified this gray area, officially allowing debt collectors to reach consumers via electronic messaging. 

Debt collectors can officially send:

  • Text messages
  • Emails
  • Direct messages on social media sites

The CFPB doesn’t limit how frequently debt collectors can send messages but “excessive” communication is prohibited. Excessive communication would violate the FDCPA, which prohibits harassment, oppression and abuse by debt collectors. 

Debt collectors that use electronic messaging to contact consumers must provide a straightforward and easy way for consumers to opt out. Consumers should most definitely use this opt-out feature if they wish to. 

Additionally, public comments on posts aren’t allowed, and debt collectors have to disclose that they’re debt collectors before sending friend requests. 

A representative for Facebook stated, “We are in the process of reviewing this new rule and will work with the Consumer Financial Protection Bureau over the coming months to understand its effect on people who use our services.” 

Lack of verification

Another rule update is that debt collectors no longer have to confirm they have accurate details of a debt before attempting to collect. Previously, collectors had to verify the amount owed and the identity of the consumer before pursuing collection. This decision has met a lot of pushback as debt collectors have a history of pursuing debts that are already paid off, and this new rule will do nothing to stop that behavior. 

New limits on collectors

The new provisions also set some limitations on debt collectors. Now, when the debt collector initially makes contact with the consumer, they must:

  • Provide relevant information about the debt
  • State the consumer’s rights about the collection process
  • Provide clear instructions on how the consumer can respond to the collector 

The consumer has the right to receive all this information before their debt is reported to a credit reporting agency. 

Additionally, debt collectors cannot threaten to sue for debt that is past the statute of limitations. They can, however, still attempt to collect an old debt. 

If a debt collector is verbally asked to stop calling, this now holds the same power as a written request and they must stop calling. However, this request doesn’t mean the debt collector has to stop all forms of communication. And a request to stop calls does not mean the debt collector has to (or will) stop attempting to collect on the debts. 

Defining “harassment”

Collectors can’t call on an account more than seven times in a week, and once they have a conversation with someone on an account, they can’t call them for seven days after that. But this doesn’t help if you have multiple accounts with a collector. 

This new rule also doesn’t apply to other communication methods, and voicemails don’t count against the seven-attempts limit.  

Again, you need to be proactive about requesting that a collector stop contacting you. You should make this request in writing and keep a copy so you have a record. (And remember that the new amendments state that debt collectors must obey a verbal request to stop a particular form of contact). 

Know when your rights are being violated

These new rules were originally proposed in 2019, were approved in October 2020 and will likely go into effect in November 2021. The new rules have received a mixed response, as some rules seem to protect consumers while other rules give debt collectors more leeway. 

A debt collector has the right to collect an outstanding debt, but there are limitations in place to protect consumers. Understanding what these limitations are can help you protect yourself. Unfortunately, just because these rules are in place doesn’t mean every debt collector abides by them. The 2019 CFPB report on consumer complaints about debt collection revealed that 81,500 complaints were filed in 2018. 

If your rights are being violated under the FDCPA, you can potentially sue the debt collector for damages (lost wages, medical bills, etc.). And if you can’t prove damages, you may still be awarded up to $1,000 in statutory damages plus coverage of your legal fees. 

Ultimately, the vital step is for you to take action and stop further illegal harassment against you. 


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

New debt collector rules you should know about

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

In October 2020, the Consumer Financial Protection Bureau (CFPB) announced  a new rule for the Fair Debt Collection Practices Act (FDCPA), which is in place to stop debt collectors from engaging in unfair practices. Consumers must understand the new debt collector rules under the FDCPA to know their rights and protect themselves. 

Your rights under the FDCPA

Approximately 28 percent of Americans with a credit report have had debt in collections, according to a 2019 report by the CFPB. Having a debt collector contact you repeatedly can feel overwhelming and intimidating. The government protects consumers by placing explicit restrictions on debt collectors under the FDCPA. By having a clear understanding of your rights, you’ll know when a debt collector is violating the law. 

The FDCPA outlines the methods a debt collector can and cannot use to contact you. Some of the previously existing rules included:

  • A debt collector cannot contact you at inconvenient times and places, including at work if they are told you’re not allowed to receive calls there. If a debt collector does contact you at work, you have the right to tell them to stop and they cannot continue calling your workplace. Additionally, debt collectors cannot call before 8 a.m. or past 9 p.m. unless you specifically say these times are okay. 
  • Debt collectors generally cannot tell others about your debt. They can only disclose your debt to yourself, your spouse, and your attorney. 
  • However, a debt collector can contact other people in an attempt to find your address, phone number or place of work. They can usually only contact these people one time. 
  • Debt collectors aren’t allowed to threaten you, use obscene language or harass you with phone calls. 
  • Debt collectors can’t tell you lies about your debt or the consequences of not paying your debt.
  • Debt collectors are not allowed to collect more than the original debt owed (like interest, fees, or other charges) unless the original contract or state law allows it.
  • If you don’t believe the debt is correct, you’re allowed to ask for a debt verification letter. After making this request, the debt collector cannot continue to pursue you until they have shown you written verification of the debt. 

It’s important to note that these rules only apply to third-party debt collectors—when a debt has been sold to another party—not the original creditor. If you have a debt outstanding with your creditor, it’s best to start discussions with them before the debt is sent off to collections. 

Updates to the FDCPA

The FDCPA has had many amendments since its original enactment in 1978. The rule was released in October 2020 and will likely go into effect in fall of 2021. 

New methods of communication

Since the FDCPA was originally created before electronic communications existed, no parameters had been set for contacting consumers via texting and social media apps. The October 2020 ruling clarified this gray area, officially allowing debt collectors to reach consumers via electronic messaging. 

Debt collectors can officially send:

  • Text messages
  • Emails
  • Direct messages on social media sites

The CFPB doesn’t limit how frequently debt collectors can send messages but “excessive” communication is prohibited. Excessive communication would violate the FDCPA, which prohibits harassment, oppression and abuse by debt collectors. 

Debt collectors that use electronic messaging to contact consumers must provide a straightforward and easy way for consumers to opt out. Consumers should most definitely use this opt-out feature if they wish to. 

Additionally, public comments on posts aren’t allowed, and debt collectors have to disclose that they’re debt collectors before sending friend requests. 

A representative for Facebook stated, “We are in the process of reviewing this new rule and will work with the Consumer Financial Protection Bureau over the coming months to understand its effect on people who use our services.” 

Lack of verification

Another rule update is that debt collectors no longer have to confirm they have accurate details of a debt before attempting to collect. Previously, collectors had to verify the amount owed and the identity of the consumer before pursuing collection. This decision has met a lot of pushback as debt collectors have a history of pursuing debts that are already paid off, and this new rule will do nothing to stop that behavior. 

New limits on collectors

The new provisions also set some limitations on debt collectors. Now, when the debt collector initially makes contact with the consumer, they must:

  • Provide relevant information about the debt
  • State the consumer’s rights about the collection process
  • Provide clear instructions on how the consumer can respond to the collector 

The consumer has the right to receive all this information before their debt is reported to a credit reporting agency. 

Additionally, debt collectors cannot threaten to sue for debt that is past the statute of limitations. They can, however, still attempt to collect an old debt. 

If a debt collector is verbally asked to stop calling, this now holds the same power as a written request and they must stop calling. However, this request doesn’t mean the debt collector has to stop all forms of communication. And a request to stop calls does not mean the debt collector has to (or will) stop attempting to collect on the debts. 

Defining “harassment”

Collectors can’t call on an account more than seven times in a week, and once they have a conversation with someone on an account, they can’t call them for seven days after that. But this doesn’t help if you have multiple accounts with a collector. 

This new rule also doesn’t apply to other communication methods, and voicemails don’t count against the seven-attempts limit.  

Again, you need to be proactive about requesting that a collector stop contacting you. You should make this request in writing and keep a copy so you have a record. (And remember that the new amendments state that debt collectors must obey a verbal request to stop a particular form of contact). 

Know when your rights are being violated

These new rules were originally proposed in 2019, were approved in October 2020 and will likely go into effect in November 2021. The new rules have received a mixed response, as some rules seem to protect consumers while other rules give debt collectors more leeway. 

A debt collector has the right to collect an outstanding debt, but there are limitations in place to protect consumers. Understanding what these limitations are can help you protect yourself. Unfortunately, just because these rules are in place doesn’t mean every debt collector abides by them. The 2019 CFPB report on consumer complaints about debt collection revealed that 81,500 complaints were filed in 2018. 

If your rights are being violated under the FDCPA, you can potentially sue the debt collector for damages (lost wages, medical bills, etc.). And if you can’t prove damages, you may still be awarded up to $1,000 in statutory damages plus coverage of your legal fees. 

Ultimately, the vital step is for you to take action and stop further illegal harassment against you. 


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

IT Jobs; VOE, CRM, Non-QM Products; Conventional Conforming News; CPI: No Inflation Worries

IT Jobs; VOE, CRM, Non-QM Products; Conventional Conforming News; CPI: No Inflation Worries

Here we are in the seemingly 58th week of 2020. What’s new? The podcast of today’s commentary features thoughts from the Millennial host on how lenders can address that market, and it can be heard via Apple, Spotify, or Google: subscribe and download. In terms of news, the FHFA extended forbearance protection past March. (More below on that.) And rating agency Moody’s view is that the CFPB’s recent changes to the QM rules would “allow lenders to qualify more types of loans as QM, resulting in a non-QM market with loans of lower credit quality, since most of today’s higher-quality non-QM loans would qualify as QM under the new rules, making future non-QM more synonymous with non-prime… the rule, if implemented could incentivize some lenders to price riskier loans lower than their true risk in an effort to fall within the new QM rule’s APR threshold. QM status conveys potential benefits to lenders and securitization issuers, such as protection against legal challenges and exemption from securitization risk retention.” More on this below as well, remember, the mandatory compliance date for the revised general QM and seasoned QM definitions is July 1.

Lender and Broker Services and Products

As the rush of mortgages and refis continues to flood the industry, it’s no secret that everyone’s feeling the deluge and leaving valuable loans on the table. At Truework, we know you’re feeling overwhelmed. Here are three things you can do to stop leaving valuable loans on the table, and take advantage of the market so you can come out on top. Truework is a US-based company with an expansive and ever-growing network and a dedicated team of mortgage professionals that are committed to tackling and completing any and all VOE/VOI requests. Additionally, we are the market leader for coverage for small and mid-sized companies. Start a verification on Truework now. Furthermore, with Truework, you can reverify employment for any request within 90 days of the original, receive up-to-date statuses on all verification reports, and get fast turnaround times. And for a limited time, Rob Chrisman readers get 6 free Verifications ($240 value). Let us do the heavy lifting so you can focus on what matters. Reach out to Zackary Green now for questions and to claim this offer.

Attention ClosingCorp and Reggora customers! If you use either of these platforms, you can now order appraisals and check the status of reports directly from within these systems – no need for yet another login. Triserv is fully integrated with both ClosingCorp and Reggora, as well as many other LOS and other technology providers. Triserv is a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. To find out more, contact Triserv Appraisal Management Solutions.

Mortgage demand among self-employed and credit-challenged borrowers is still growing, according to Verus Mortgage Capital, the industry’s largest purchaser of Non-QM loan products. Largely ignored by lenders since COVID struck, the consumers demand has not changed. Fortunately, Non-QM guidelines are back to pre-COVID levels and some pricing is actually better, attracting more originators to this business. It’s time to help borrowers who don’t fit into the GSE credit box and who need the flexibility offered by the leading Non-QM investor. For more information about adding Non-QM products to your menu contact Jeff Schaefer, EVP of Correspondent Sales (202-534-1821).

One month into 2021 and Stearns Wholesale is already kicking the new year into high gear with exciting new tech developments! This week, Stearns has reduced its minimum lock duration from 60 to 45 days, reduced the minimum credit score to 620 now allowing up to 90% LTV on its Accelerator program, and removed the COVID cash out adjustment of .375. Stearns has also enhanced its Jumbo Loan Guidelines, which now allows 2nd homes, a max loan amount of $2 million and a minimum credit score down to 700. If you want to learn more about these exciting new product updates or partner with Stearns, click here to be contacted.

It’s a well-known fact that 2020 was a banner year for the mortgage industry. As you look over your 2020 numbers, ask yourself, “is this the best we could have done?” If you’re not working with Sales Boomerang to maximize borrower retention, the answer to that question is, “Nope. You definitely could have done better.” Sales Boomerang notifies lenders when someone in their database is ready for a loan. And the numbers speak for themselves: up to 65% borrower retention and 20-40% average lift to loan volume, all for around $299 per acquired loan — an average 20x ROI. Want more proof? With a loan loss report, Sales Boomerang can show you which competitor took your deal, the loan amount, type of loan, the term and much more. Request yours from Sales Boomerang today to learn how you can keep more of your borrowers.

As industry experts, TMS anticipates 2021 should see a steady rise in mortgage rates, and consequently, the refi faucet slowly turning off (eventually). The purchase market will once again be lenders’ bread and butter, although with slightly modified, post-COVID conditions. TMS CAREspondent has compiled some great tips in its new blog to help lenders prepare for this impending shift. Partner with TMS today.

While there’s no crystal ball capable of showing the industry’s future, MBA Chief Economist Dr. Mike Fratantoni is the next best thing. Join LBA Ware for the first of its quarterly webinar series More Insights, Better Decisions: Michael Fratantoni’s 2021 Mortgage Industry Outlook for a data-packed discussion on the state of the mortgage industry. Drawing on the latest stats, Mike will help you take a data-driven approach to your business decisions this year. Register for the free webinar, which takes place tomorrow, Thursday, February 11, from 1-2 pm ET.

“When people and robotic processes work together, loans get completed faster, error free.” If Elon Musk chose the mortgage industry, that’s how he’d do it. It’s how modern assembly lines achieve maximum efficiency. Yet many loan teams still handle loan files the old-fashioned way with tedious data entry, error-prone, time-consuming communications, and no way to get visibility into what may be at risk of missing critical deadlines. Now imagine an online, ultra-productive, “loan assembly line” that coordinates every step for every loan, actively prioritizes everyone’s tasks and eliminates tedious, routine work in your CRM+POS+LOS. That’s what TeamworkIQ does for $24/user/mo. It makes sure things get done right and get done on time while tracking each loan’s details, documents, deadlines and turn times. Loans get done faster and error free. What if you could 4x your efficiency in under 30 days? See how American Pacific Mortgage did and test-drive TeamworkIQ for free.

Leverage your existing technology ecosystem… it’s paid for!  Service 1st is integrated with multiple LOS and point of sale systems for TRV, SSV, VOE and credit reporting, with more added each year. Keep your team safely engaged and instantly cascade through S1 solutions within your IT environment. Additionally, many originators and lenders experienced significant VOE and credit reporting cost increases as we entered 2021. Have you contacted S1? S1 creates significant value via loan manufacturing efficiencies: Results (verifications and tradeline updates delivered 50% faster than industry benchmarks) without the hefty price tag. No signup fees or minimums.  Get started today with a no obligation price proposal at srv1st.com.

There’s still time to register for XINNIX’s upcoming quarterly Leadership Lessons Webinar: “Beyond the Daily Commentary 2021: A Live Q&A with Rob Chrisman” happening today at 1 PM ET. XINNIX Founder & CEO, Casey Cunningham, will be hosting this live Q&A session likely on topics focusing on exactly what is important to you. Reserve your seat today!

FHFA, Freddie, Fannie News Impacting Borrowers Everywhere

Huh? Freddie and Fannie operated like utilities? Let’s see how that is working out for PG&E and California. Seriously, what if the Administration left the two of them under conservatorship? It would certainly leave industry pundits less to talk about, right?

The Federal Housing Finance Agency (FHFA) extended the forbearance period to 15 months for GSE borrowers. This is an additional three months beyond the previous 12-month limit. Black Knight had reported that nearly 25% of all (not just GSE) active forbearance plans were scheduled to reach their 12-month expiration in March, and another nearly 15% in April. This extension should provide support for troubled borrowers through the difficult winter and early spring months. We view this announcement positively for mortgage credit broadly. In our coverage universe this primarily benefits mortgage insurers and mortgage REITs.

Fannie Mae issued Selling Guide Announcement SEL-2021-01 which includes update information on the verification requirements related to seasonal and secondary income, the seller/servicer post-purchase adjustment (PPA) process to require the use of the PPA form, and the removal of references to lenders authorizing release of MI data.

A recent Compliance Update from First American Docutech discussed Freddie Mac’s announcements in Bulletin 2021-4  regarding CMT-indexed ARM, IRS Form 4506-C, and

authorized change for the uniform Oklahoma Mortgage (Form 3037). And Fannie Mae is retiring CMT Arm Products per FNMA LL-2021-05; more information in Compliance News.

loanDepot’s Weekly Announcement includes the Fannie Mae Appraisal Risk Management Policy Reminders and Resources and updates on FHA Loan Limits 2021. loanDepot has new programs available, smart Term Conforming and High Balance. Information on these programs and updates to its Conventional Lending Guide are discussed in this Announcement.

PRMG announced the expiration of QM Points and Fees Cure Provision on covered transactions with consummation dates after January 10. Impacted loan programs include Conventional (Fannie Mae and Freddie Mac), FHA and USDA. Lenders or assignees will no longer be allowed the option to cure the transaction and bring it into QM compliance when the total points and fees exceed the applicable limits.

Plaza Home Mortgage offers Fannie Mae HomeStyle® and Freddie Mac CHOICERenovation® loan programs. Download Plaza’s flyer for more information. In alignment with Freddie Mac Bulletin 2020-45, Plaza has updated the Home Possible® program guidelines, effective for all loans purchased on or after March 1, 2021. Specifically, this update reduces the maximum LTV from 95% to 85% for certain Home Possible Mortgages secured by 2-4-unit properties.

COVID tolerances have been extended on Flagstar Bank Conventional Products. Read Memo 21011 for details.

MQMR addressed how internal audit policies and procedures can meet federal and agency requirements. It discussed Fannie Mae’s release of several checklists as part of their Seller/Servicer Risk Self-Assessments, including the Internal Audit checklist. Internal audits are an important risk mitigation tool that uncover operational inefficiencies and potential areas of risk within a lender’s organization. For that reason, it is important for sellers/servicers to know that their Internal Audit policies and procedures satisfy federal and agency requirements and are effective for identifying risk. The article provides a list of requirements for an internal audit self-assessment checklist.

MQMR also spoke to the best practice of requiring outsourced service providers, such as contract underwriters and processors, to be checked against exclusionary lists. While the practice may not always be feasible to do, particularly if the lender is not made aware of the individual contract underwriter’s/processor’s name by the third party service provider that employs them, the article provided a summary of Agency guidelines on this issue from Fannie Mae Selling Guide Chapter A3-3, HUD Handbook 4000.1, Chapter II, A, 1, iii, and Freddie Mac Seller/Servicer Guide Chapter 3101.

Capital Markets

Our economy is driven by jobs and housing, and it is worthwhile to take another look at the employment numbers last week to keep things in perspective. After falling 227,000 in December, nonfarm payrolls increased a mere 49,000 in January disappointing many analysts who were expecting a more robust number. But thanks in part to a drop in the labor force, the unemployment rate fell from 6.7 to 6.3 percent. The U-6 unemployment rate, which includes those marginally attached to the labor force as well as those who are working part-time but prefer to be working full-time, declined. And initial claims for unemployment have been slowly declining and February’s outlook remains positive. Claims are still well above pre-recession levels and still largely affecting those in their prime working years. On top of that, U.S. manufacturing continues to improve according to the latest ISM Manufacturing Index. Inflation? Commodity prices rose nearly across the board for the month. Services also continued to expand but arts/entertainment/recreation, education services, and retail trade continue to struggle in the face of the ongoing pandemic.

Looking at rates Tuesday, Treasuries yields rose marginally across longer durations and the MBS basis ended Tuesday tighter, particularly on higher coupons as investors weighed the latest on stimulus, earnings, and vaccination efforts, trying to determine whether letting the economy run hot will spark destabilizing inflation. The day’s $58 billion 3-year note auction was met with solid demand ahead of today’s $41 billion 10-year Treasury note auction results.

Today’s economic calendar is already underway. Mortgage applications decreased 4.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 5. 30-year mortgage rates remained near their cycles lows during the reporting period (2 7/8). We’ve also had January Consumer Price Index (+.3 percent, as forecast, much of the gain due to gasoline, the core rate was unchanged). Coming up are December wholesale inventories and sales, remarks from Fed Chairman Powell on the “State of the US Labor Market” before the Economics Club of New York, and the January budget deficit from the Congressional Budget Office. Today’s Desk purchase schedule is the largest of the week at $8.8 billion over three operations, including over $7.3 billion in UMBS30s. We begin the day with Agency MBS prices unchanged and the 10-year yielding 1.15 after closing yesterday at 1.16 percent after the CPI data reminded us that inflation is currently not an issue.

 

Employment

“OpenClose continues to experience record setting growth while bank, credit union, and mortgage lender demand for our award-winning digital lending ecosystem is booming. This success makes available exciting opportunities for experienced mortgage banking and innovative software professionals to join the OpenClose family. We are seeking qualified and energetic professionals to join our implementation team as a Mortgage Software Implementation Specialist. The specialist will be responsible for the implementation of new customers and work with existing customers providing business + channel + user analysis, workflow evaluation, application setup and optimization of installations of our Web-based, enterprise-level mortgage software platform. Notable is that OpenClose is a 100% browser-based platform and can largely be implemented remotely. Minimal travel, if any, is involved in this position. Come see why OpenClose has received the Top Mortgage Employer award four years running. This and other opportunities can be accessed at Join the OpenClose Family!”

STRATMOR Group is anticipating a significant uptick in Merger and Acquisition activity in 2021. As a follow up to its recent open-position post, STRATMOR is seeking a professional with at least two years of hands-on M&A or Private Equity experience. This is a junior level position that will benefit from STRATMOR’s extensive experience in this industry. Employees of STRATMOR enjoy working at a company that has successfully managed remote work for decades and continues to grow in importance in the market. Specifically, this new hire will assist the STRATMOR team with tracking the M&A deal pipeline, generating interest with new M&A candidates, and creating Confidential Information Memorandums (CIMs), and financial models. If you are looking for an exciting new position with a highly respected mortgage consulting firm, then drop STRATMOR a note.

 

Source: mortgagenewsdaily.com

What Does Insufficient Credit History Mean?

Insufficient credit history means you have no proven track record with creditors that lend money or other assets.

Whether you’re applying for rental property, a personal loan, a student loan, a line of credit or something similar, there’s another party that will depend on you to fulfill your promise to pay. Some of the parties that can access your credit report include:

  • Insurance companies
  • Banks and financial institutions
  • Landlords and employers
  • Mortgage lenders, auto loan lenders and other lenders

The credit score was created in 1956 by the cofounders of the company that is known today as FICO®. Lenders now rely on this score, or some variation of it, to evaluate the creditworthiness of recipients to calculate interest rates. 

Before you’ve established creditworthiness, you may be wondering whether no credit means bad credit. Thankfully, having no credit history doesn’t necessarily mean you have bad credit. It simply means you haven’t proven whether you can be trusted to pay back your debts. Unfortunately, most lenders want proof of credit history before they’ll approve a loan, which means you need credit history in order to build credit history—a classic chicken-or-the-egg problem. 

If you have an insufficient credit history, you are far from alone. The Consumer Financial Protection Bureau (CFPB) reports that eight percent of adults had credit records that were “unscorable” by major credit rating systems. Almost half of these “unscorable” records were for insufficient credit history, and the other half were for a lack of recent credit history. 

How Credit History Contributes to Credit Scores 

Although nearly 90 percent of consumers begin to accumulate credit history in their mid-to-late twenties, the CFPB reports that more than 11 percent of adults in 2010 were “credit invisible,” which means they don’t just have an insufficient credit history—they have zero credit history. 

The three major credit bureaus—TransUnion, Experian and Equifax—are tasked with collecting and maintaining the creditworthiness of the general population. Lenders and other parties interested in someone’s creditworthiness can make an inquiry into the borrower’s credit score. These scores can range from 300, which is extremely poor credit, to 850, which is exceptionally good credit. 

Your FICO scores are calculated using your payment history, the amounts you currently owe, the amount of new credit you have, your mix of credit accounts and the length of your credit history. FICO scores range from 580 – 800+.

According to FICO, the algorithm for calculating a credit score contains five components that are assigned the following weights: 

  • 35 percent | Payment history
  • 30 percent | Amounts owed
  • 15 percent | Length of credit history
  • 10 percent | Credit mix
  • 10 percent | New credit

Looking at this breakdown, it’s clear that the most important aspect of your credit score is making regular, on-time payments for amounts greater than or equal to the minimum amount due. It’s also important to maintain a low debt-to-income ratio, which means the amount of debt you owe should be relatively low compared to your income.

The various credit reporting bureaus have slightly different methods of calculating your credit score. TransUnion, for example, reports that payment history accounts for 40 percent of the score and the length of credit history accounts for 21 percent.  

Is One Year of Credit History Enough? 

Typically, you need six months of credit history in order for a credit score to be calculated and reported by the major credit bureaus. This credit score may not be enough to get approved at a reasonable interest rate, though, depending on the specific kind of loan you want. 

The interest rate and payback period for a loan usually depend on your credit score, which in turn depends on your credit history. For example, it’s unlikely that someone with less than one year of credit history would qualify for a 30-year mortgage. 

Keep in mind that a single credit score doesn’t last forever. You must continue to prove your creditworthiness by paying your debts on time and making at least the minimum payment due. This means that even with years of credit history, if you close all lines of credit and pay off all debts, you might return to an insufficient credit history status, although many items can stay on your report for up to 10 years. 

The demographics of credit scores based on age.

How to Build Credit History

Unfortunately, there are no quick fixes for insufficient credit history. The only way to build trust with lenders is to make consistent payments on your debts over time.

The best way to fix insufficient credit history is to start building your credit now. A secured credit card, for example, allows you to build credit without taking any of the risk associated with borrowing money. You must maintain responsible purchasing habits and make regular payments to prove your creditworthiness. 

When your credit history is insufficient, there are some strategies to proactively build credit and work toward a higher credit score. Although there is no way to speed up the process of credit history, follow these steps to build a better history of creditworthiness. 

1. Review Your Credit Report for Errors

According to FICO, a study by the FTC discovered that 26 percent of people have had at least one error on their credit report. If you have a lower than anticipated credit score or none at all, review your credit report and dispute any errors with the credit bureaus. This is where a credit repair company can potentially help you. 

If you’re deemed to have insufficient credit history, but you believe you have established credit, first consider whether it’s been more than six months since you last paid a debt in case your credit history has lapsed. Otherwise, confirm that all personally identifiable information (such as your legal name, Social Security number and driver’s license number) is accurate on your loan application. 

If your legal name is even slightly misspelled or is missing a suffix (Jr., Sr., I, II, III, etc.), your credit report could be incorrect.  

2. Get a Secure Credit Card

If you have no credit and therefore no credit history, you will find it difficult to get approved for a loan. Instead, you should consider secure credit cards as a stepping stone to getting more credit. 

Secure credit cards are backed by a cash deposit instead of your promise to pay the lender back (i.e., credit). Once you have made good on your promises to pay back all purchases and interest charges on your secured credit card, you can transition to an unsecured credit card. The unsecured credit card is usually when your credit history begins, and six months later, you will likely have a credit score. 

3. Pay Your Bills on Time 

Since between 35 percent and 40 percent of your credit score is calculated based on your payment history, you should be diligent about paying your bills on time and in full. Anyone that extends you credit, in the form of debt, expects to be paid back at regular intervals and for at least the minimum amount due. Late or incomplete payments may negatively affect your future credit score.  

4. Maintain or Reduce Debt-to-Income Ratio

With 30 percent of your credit score depending on the amount you owe to lenders, maintaining a healthy debt-to-income ratio is recommended. If possible, pay off balances every month instead of building up debt levels that become unsustainable. 

As you now know, establishing credit and credit history is important, but the work doesn’t end there. It’s essential to monitor, maintain and, if needed, proactively work to boost your credit score. Late payments, collections, defaults, and bankruptcies can have a negative impact on your credit report for as long as 10 years.  If you feel your credit score does not accurately reflect your credit history and creditworthiness, the credit repair services offered by Lexington Law can help you dispute inaccurate negative items on your report. Learn more about this possibility today.


Reviewed by Daniel Woolston, an Assistant Managing Attorney at Lexington Law Firm. Written by Lexington Law.

Daniel Woolston is the Assistant Managing Attorney in the Arizona office. Mr. Woolston was born in Houston, Texas and raised in Sugar Land, Texas. He received his B.S. in Political Science at Brigham Young University and his Juris Doctorate at Arizona State University. After graduation, Mr. Woolston worked as a misdemeanor and felony prosecutor in Arizona. He has conducted numerous jury trials and hundreds of other court hearings. While at Lexington Law Firm, Mr. Woolston dedicates his time to training paralegals and attorneys in credit repair, problem solving, and ethical and legal compliance. Daniel is licensed to practice law in Arizona, Oklahoma, and Nevada. He is located in the Phoenix office.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com