Some homeowners who sign up for the government's mortgage assistance program are getting a nasty surprise: Lower credit scores.
For borrowers who are making their payments on time but are on the verge of default, the Obama administration's loan modification program can reduce their credit score as much as 100 points. That makes it harder to get a loan and can present a problem when applying for a new job.
A sustained recovery depends very much on consumers who are able to obtain credit and jobs. Participating in this trial home mortgage modification program harms both of those objectives, at least in the short term.
Gomer Pyle might have said it best: "Surprise, surprise!"
