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IPFS News Link • Economy - Economics USA

Nasty Surprise: Credit scores can drop after getting loan help

• By Alan Zibel, AP, Yahoo News
WASHINGTON (AP) -- 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.