When a consumer fills out a mortgage application to purchase a home, or do a refinance, it means that obtaining his credit report will follow. It's part of the process and readily accepted. Something else may also happen, though, that can cause bewilderment in the home loan applicant, maybe even anger of various decibels.
This action actually permits credit bureaus - Equifax, Experian, Innovis and TransUnion - to peddle the mortgage borrower's information to third party vendors, among which can be other home loan providers. The phone at the consumer's pad can start ringing with unwanted solicitations that probably were not penciled in on his calendar. If so, the mortgage broker who took the original application likely will receive heated questions about it, giving his otherwise ordinary day a new twist. Sometimes a brief, to-the-point explanation will suffice, sometimes the matter will spiral in a new, unwanted direction from which recovery can take time.
The applicant can avoid this with a couple of quick moves, often advised so by his practical mortgage lending professional. Registering in the Do Not Call list will do it. https://www.donotcall.gov/. To get even more protection against this questionable practice he could also enter his name in the Opt Out Prescreen register that will prevent for five years, or even permanently, the credit bureaus from selling his data further on. https://www.optoutprescreen.com/.
Who said that staying one step ahead of these practices can't be done?
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Provided by:
Esko Kiuru
Mortgage and real estate market commentator
www.BluefoxToday.com - syndicated mortgage and real estate blog
eskokiuru@gmail.com
My cell: 702-499-1006
The DNC list is a great relief for many. It's good that measures are in place to protect consumers from being targeted by telemarketing and other door to door or phone to phone commerce. Thanks for a great post and reminder. Have a fine weekend, Esko.
Esko - Good advice for borrowers who have no interest in additional solicitations.
Esko, it has always troubled me that the credit bureaus have been allowed to do this. But some states are beginning to crack down on it, and Connecticut is one of them. In studying for the Connecticut State Licensing Test I have read the laws that Connecticut has past to prohibit this. The issue now is how to enforce them.
Registering with the DNC is a good thing. It isn't perfect but since its inception, it has become more effective. As to the credit bureaus, may I register my disgust? :)
As you know with different sellers requiring a pre-approval from all these different companies I don't blame buyers cringing every time they have to apply with a different lender!
David,
DNC in itself is a great protection for consumers.
John,
These two websites will keep the mortgage borrower from the "trigger" lists.
George,
Hopefully all states will soon ban this kind of questionable solicitation.
Kate,
It's disappointing that the credit bureaus are permitted to do this, but consumers can fight back by using these two websites.
Renee,
Exactly. Unless the buyers are on the DNC list the phone can ring off the hook.