Released on = March 07, 2006, 5:17 pm

Press Release Author = Ralph R. Roberts

Industry =

Press Release Summary = Adding an authorized user to your credit card account seems
harmless enough, but it can hurt more than it helps, warns Real Estate and Mortgage
Fraud expert Ralph R. Roberts. Problems can result when this personal convenience is
used for credit enhancing, the practice of piggybacking on someone else\\\'s credit in
order to qualify for a mortgage they really can't afford.


Press Release Body = Press Release
For Immediate Release



Underground Industry Falsely Boosts Credit Scores to Get Home Loans

DETROIT, Michigan March 3 -- "It's as easy to authorize additional people to use
your credit card as it is to swipe the card at the checkout counter," Roberts points
out. "By phone or online, within minutes your wife or your kid at college can be
added to your account, and within days a new card arrives in the mail. But consumers
might not realize that adding someone as an authorized user means that person
inherits your credit history. In other words, if you have an excellent credit rating
and you add your daughter's name to your account, she automatically receives a boost
in her own credit rating--a boost she did not earn."

Unfortunately, Roberts says, unprofessional real estate agents and mortgage brokers
have been telling clients with poor credit scores to do the same thing. "An entire
industry now operates underground to boost consumers' credit scores so they'll
qualify for home loans," explains the author of Real Wealth by Investing in Real
Estate (Penguin/Prentice Hall) and other books about real estate sales and
investing.

Roberts cites a company called Credit Funding Solutions, Inc. (formerly Credit
Launchers and also known as CFS), which promises to improve consumers' poor credit
scores to unreasonably high levels in as few as 90 days for a flat fee that
consumers have to pay in advance. "According to its web site (which has now been
taken down), the company could add the name of a consumer applicant to the CFS
president's own personal credit card accounts--again, allowing someone to benefit
from a drastically improved credit rating that they did not earn," Roberts says.

Since last year, however, participants in this sort of activity are technically
breaking a federal law. "Current U.S. Code on bank fraud says whoever knowingly
executes, or attempts to execute, a scheme to defraud a financial institution by
means of false or fraudulent pretenses can be fined up to $1 million or imprisoned
up to 30 years, or both," Roberts says.

Nevertheless, CFS is marketing its services in nearly every state with aggressive,
Internet-based advertising on sites like craigslist.org, and a competitor called
Seasoned Trade Lines has emerged. "Both companies offer consumers with good credit
scores thousands of dollars to allow strangers to piggyback on their credit card
accounts," Roberts asserts. "What's even more alarming is that mortgage brokers and
REALTORS encourage the practice by referring customers to both companies!"

Roberts has no problem with an individual adding someone to his or her credit
account as an authorized user. "It's perfectly legal, and in most cases is done for
perfectly legitimate reasons," he says. "What I'm not okay with, both as a REALTOR®
and private citizen, is someone with a poor credit score or non-qualifying income
being able to qualify for a home loan based on an artificially inflated credit
score. In case after case, the new homeowner defaults on the loan, which only adds
to the problem."

Roberts wants the three major credit reporting bureaus--Equifax, Experian, and
TransUnion--to address this issue. "For consumers and the real estate industry, the
stakes are too high for us not to be talking about it," he says. "Anything that can
manipulate the system and be used to commit Real Estate Fraud needs to be road
blocked, and anyone who piggybacks on someone else's credit score with the intent of
securing a home loan should be stopped, as should the real estate industry
professional who suggested it."

Dubbed by Time magazine "the best-selling REALTOR® in America," Ralph R. Roberts is
a recognized authority on residential real estate, Real Estate Fraud, personal
salesmanship and sales force and office management, motivation, and design. For more
than a quarter century, he has helped thousands of consumers realize the dream of
homeownership and helped federal officials educate state and local law enforcement,
regulators, and financial institutions on the problems associated with Real Estate
Fraud.

# # #

CONTACT: Ralph R. Roberts is available for interviews and additional background.
Please contact Lois Maljak, Ralph Roberts Realty, LLC; 1+586-751-0000,
LoisMaljak@ralphroberts.com.

Source: Ralph Roberts Realty, LLC
Web site: http://www.flippingfrenzy.com


Web Site = http://www.flippingfrenzy.com

Contact Details = 30521 Schoenerr, Warren, MI - %phone% -
ralphroberts@ralphroberts.com