REALTOR® Magazine-Daily News-HAMP Applicants Risk Credit Score Reduction
Borrowers who apply for the government’s Making Home Affordable program are likely to have their credit scores drop about 100 points.
This can be a nasty surprise if they try to get a car loan or even apply for a job. “It’s a feeling of being duped,” says Kathy Conley, a housing counselor with the nonprofit credit counseling service GreenPath Inc.
Credit rating agencies defend the reduction, saying that borrowers wouldn’t be applying to participate in the program if they weren’t having financial troubles.