False info. I did residential mortgage loans for 30 years and medical debts were never figured into your credit rating. Now, Slo Joe may sign something that says they don’t show up on your credit report, but they were never figured into your credit score.
The article reads:
“The three largest credit bureaus, TransUnion, Equifax and Experian are removing cleared medical debts from consumers credit reports beginning in July. This means that if you’ve paid your medical bill in full and the debt is still sitting on your credit report as a negative mark, this negative mark will now be removed.”
So those you paid off no longer show, but those which are still outstanding continue to show up.
See, these things were never a concern to mortgage lenders unless the debt could be attached to the residential property. Now some judgments could be attached to the property, but I’ve never seen a unpaid medical collection that got tied to real property. Since that’s not a concern, mortgage lenders don’t really care.
This article makes it sound like lenders can see you once had unpaid medical collections that have since been settled, but since they still show on your credit it put the consumer in a position where lenders or creditors would use it against them. But that’s just not the case. Basically, Slo Joe is signing into law something that doesn’t really matter.
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