[apexcrsrvc]

Originally Posted by centex

In addition to all of the liar loans, you had people all over the boards that were getting AU accounts and seeing almost instantaneous increases of 30-50 points which then put them in a position to get their precious mortgage...they had already demonstrated that they had no fiscal sense and shouldn't have been in a position to be approved, but because they had artificially inflated their scores, they now 'qualified' for the liar loans.

The culmination of events has resulted in the loss of a number of mortgage products that had legitimate uses until they reached a point of abuse.

There are obviously still people writing jumbo paper, but it is a more complex process. It actually took about ten days to get a contract pending sign on a neighboring property that appears to have sold for $850K (slightly less than asking but still far more than taxable appraised).

There is NO LEGITIMATE REASON for anyone other than a spouse or child to need AU access and I will continue to hold strongly to the opinion that anyone else using them (much less charging for or paying for them) is perverting the intent of the ECOA. I can only hope that legislation eventually gets passed that bans the sale of AU access...

Oh, I see your logic now. It's okay for Mommy and Daddy to "artificially" inflate their childs score but, it isn't okay for a person to pay for exactly the same thing. Both means reach the same end. Moreover, it isn't an "artificial" inflation because Fair Isaac made the rules and now their in a bind insofar as the ECOA says that the accounts much be scored.

In any event, the impetus of the ECOA has nothing to do with authorized user accounts. However, FICO 08' is in violation of it and thus, would be a perversion of it's legislative intent.

I still have a hard time getting my head around people that purport to be consumer advocates but, then have such issues with this practice. If it helps the consumer, I am for it. It's one's perogative to view it as unethical but, I suppose everything under the credit repair umbrella can be percieved as such.

Bottom line is that the process is legal and to actually think that AU accounts had anything to do with the mortgage crisis is frankly absurd. That argument is so transparent it does not merit serious attention.