As a mortgage loan officer, can I repair client’s credit for them if I don’t charge a fee?

Deal Score0

When I close the loan, will that count as compensation? Is there a license I would need or do I need a Power of Attorney? Will a Borrower Authorization Form suffice? Why is it that only lawyers do this? I just want to save them some time by sending the letters for them and create some loans for myself at the same time. If there are no licensing requirements, can I charge for this service to make a small profit and make sure I’m working with serious home buyers?

10 Park Plaza – Suite 5170, Boston MA 02116
(617) 973-8700 FAX (617) 973-8799
TTY/TDD (617) 973-8790



April 19, 2007 CONTACT:
Kimberly Haberlin
(617) 973-8767
(617) 947-8942

Consumer Affairs Issues Consumer Alert on Advance-Fee Loan Scam And Pay Day Loans

BOSTON – The Office of Consumer Affairs and the Division of Banks today issued a consumer alert warning consumers about a potential advance-fee loan scam and an illegal pay day loan operation recently advertised in the Boston Metro.


Advance-fee loan scams generally involve the promise of easy credit regardless of credit history. Upon completion of a loan application, the entity requires a consumer to wire a percentage of the loan amount, various fees, or payment of insurance in order to secure the loan. Upon collection of the fee, the loan is never delivered.

Amcorp Capital is operating a website at The only contact information provided on the web site is a toll free telephone number and an email address. The web site also lists a business address of One Boston Place, Boston, Massachusetts.

Amcorp Capital claims to offer mortgage loans, education loans, personal loans, and automobile loans. This entity is not licensed by the Division of Banks and calls to the company have not been returned. An investigation by the Division of Banks has determined that no such business is located at the One Boston Place address. Moreover, the Amcorp Capital’s web site was apparently created on April 11, 2007.

Similar to other advance-fee loan scams, the website promotes the availability of easy credit regardless of credit history. Based upon discussions with consumers, Amcorp apparently requires, upon completion of a loan application, that a percentage of the loan be paid up front directly via wire transfer.

The Office of Consumer Affairs and Division of Banks strongly urges consumers not to do business with this entity. “This has all the earmarks of an advance-fee loan scam,” noted Director of Consumer Affairs Daniel C. Crane. “Consumers should know that no legitimate lender would require an upfront payment to secure a loan. Consumers should also be extremely cautious when dealing with companies that you do not know. All efforts should be made to safeguard your personal information such as bank account, credit card, or social security numbers.

For more information on advance loan scams please see information from the Federal Trade Commission available at


Director Crane also announced that Commissioner of Banks Steven L. Antonakes had sent a letter to the Boston Metro requesting that the publication cease accepting print advertisements from pay day lenders. Commissioner Antonakes sent a similar letter to the Boston Metro in February 2005 and the newspaper, until recently, had not run advertisements for pay day lenders.

“Pay day loans carry exorbitant interest rates and can quickly lead consumers into escalating debt,” said Director Crane. “There is also a high risk of identity theft as this company’s advertisement provides virtually no identifying information.”

Commissioner Antonakes added, “There are no payday lenders licensed or based in Massachusetts. Under the state’s small loan law, annual interest rates on these loans are capped at 23% and fees are limited to $ 20. Pay day lenders typically charge annual percentage rates averaging 300 percent and fees averaging $ 30.”

Pay day loans are short term, small sum, high rate, unsecured personal loans that use consumer checking accounts (either post-dated checks or electronic access) to secure repayment of the amount borrowed. Repayment of the full amount and lender fees are typically due within 14 days or with the borrower’s next paycheck. Partial payments are rarely allowed so if a borrower can’t repay the full amount within the required timeframe, the loan is usually rolled over for additional periods of time and additional fees.

If you believe you have been a victim of this advance-fee loan scam or pay day loan operation, call the Division of Banks’ Consumer Assistance Unit at 1-800-495-BANK (2265).

  1. Reply
    January 25, 2011 at 8:08 am

    I don’t know why you would want to do credit repair. Seems to me like you need a good marketing plan so you can attract people that want to refinance their homes or people that want to purchase homes.

    Credit repair is very time consuming. Lawyers are not the only ones that can do credit repair. There are ebooks on the Internet that can be purchased and down loaded. There are credit repair companies in your city. Most fax their services to your company that you work for you just don’t see or get them. You do not need a license to do credit repair, except a city license if you are working from home or out of an office. Call your city business license department for the requirements

    A good marketing plan will solve your problems about getting enough loans to please you and and keep you busy. Try a couple of referral seminars, and farming.

    Try I think that link still work, they give a few marketing skills you might be interesting in.

    I hope this has been of some use to you, good luck.

  2. Reply
    January 25, 2011 at 8:15 am

    You can assist borrowers in fixing their dented credit scores but you cannot have power of attorney in most sates because they are your customers in a financial transaction and that is a conflict of interest.

    You can have draft letters you furnish them with, but don’t get involved with fixing their credit because you will be conflicted and you don’t want the regulators breathing down your neck.

    Also there are a lot of firms that do credit repair work, it is not the sole province of lawyers.

  3. Reply
    sara bellum
    January 25, 2011 at 8:59 am

    thanks for the heads up

  4. Reply
    donald t
    January 25, 2011 at 9:47 am

    thank you for the info, all states need to do this when a company is busted, and it should be published and put in all newspapers. the name and supposedly location of the company. and the owner should be prosecuted.

  5. Reply
    Lo Kee
    January 25, 2011 at 10:37 am

    I wish, I would’ve had this information before I sent my payment.. I think all states should have this information available at all times.. Thanks for the information

  6. Reply
    January 25, 2011 at 11:03 am

    They also work under the web address which has a physical address of 41 Marietta st nw in atlanta, ga. There is no such company in this building. DO NOT SEND THEM MONEY! No one should have to pay money to receive money. I just lost $ 1000 to them so I speak from hard learned experiance. I’m making it a priority to see them shut down. Post to every website you can find, call the AG off ice in you state and send a report to the BBB. None of the above can return your money, but the word will get out faster and maybe they’ll be found.

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