BAC dinging credit scores for asking "Where's the note?"

[taught_me_patience]

Just when you think the banks couldn't sink any lower...

http://www.ritholtz.com/blog/2010/12/note-bac-credit-score/

Where’s the Note? Leads BAC to Ding Credit Score

By Barry Ritholtz - December 14th, 2010, 9:15AM Let’s imagine the following scenario: You have a Jumbo mortgage with Bank of America. You are a good customer, do your banking with BofA, and you have never missed a payment. In fact, you always send your mortgage in on time.

But this fraudclosure mess has you curious. You wonder who actually holds your note, how many times its been sold, what MERS involvement is.

With your curiosity piqued, you decide to ask Bank of America where your actual mortgage note is, and who is holding it.

That is what long time BP reader SM did. He writes in to note what happened:

“FYI Just to let you know I ended up doing Where’s the Note and it resulted in this for me, see the 2 reported disputes in the attached screenshots below for my Jumbo 1st mortgage. 40 point hit on my scores. I will be speaking with an attorney soon. We need to get a warning out (SEIU has not responded).”

[struggle4progress]

1. What, if anything, does SEIU have to do with this?

[newtothegame]

2. No surprise here. A credit score is supposed to be a measure of risk.

If your report has fraudulent items on it (or you've submitted a dispute saying it does), that sure as hell looks likes a risky venture for a potential lender to get into.

Unfortunate but true.

[backscatter712]

4. Where's the fraud?

A homeowner asked who was actually holding the mortgage note. That's a perfectly valid question.

[menotyou]

3. After 3 letters and threatening BOA with a lawsuit they finally responded and said..

show us the law that says we have to show you the note.

and since congress has not created such a law the only way to force the banks to show the note is to go into foreclosure (or maybe file quiet title) and force them via the courts to show it.

checking on the credit report dinging..thanks for the update