C.A.R. developed this legislation with Senator Figueroa to help demystify the homebuying process and end these fears, so we can transform homeownership from a distant dream into a reality for more families, he said. A credit score is derived from information contained in a credit report, but it is not the report itself. Unfortunately consumers do not have the right to know what information was used to compile their score. For instance, a homebuyer may lose points on their score for not having enough bankcards or having paid off a loan too quickly, but not be able to see the problem reflected in any obvious way on their credit report. This means that consumers may end up paying higher loan interest rates or be denied loans altogether based on information on their credit reports that may appear to be neutral, if not positive.
Consumers deserve to know how lenders are evaluating their loan applications.
C.A.R. is headquartered in Los Angeles.