RTC Mortgage Blog

Don't Be Exploited by the Credit Breaus

May 14th, 2010 8:17 AM by Richard T. Cirelli

Trigger Leads: Don't Be Exploited by the Credit Bureaus

Certain mortgage companies will pay top dollar to know exactly who is in the market for new financing. What's more, the major credit agencies not only allow files to be flagged whenever someone applies for a home loan, they actually sell this private information as leads to the highest bidders!

For a price tag of $25 to $100, names, addresses, phone numbers, mortgage histories, and even FICO score ranges are sold by the credit bureaus to mortgage companies, which then blindly solicit business.

Unfortunately, no legislation exists to prevent credit companies from profiting from this practice. As trigger leads, consumers are simply at the mercy of any number of solicitations designed specifically to discredit the mortgage professionals they've come to know and trust.

Remember, a limited number of sources exist for lenders to obtain mortgage money, and it's unlikely that a borrower will find an unbelievably low rate without an unbelievably high cost.

How To Opt Out:

Prior to applying for any loan program or even right now, anyone can visit www.optoutprescreen.com to opt-out of credit bureau solicitations and avoid the problem altogether. While you are at it you may also want to put yourself on the "Do Not Call List" and cut down on your junk mail too. Below is a link to each of these websites. Let's keep ourselves, our clients and our colleagues from receiving unwanted solicitation.

To Opt Out of Credit Bureau Trigger Leads: www.optoutprescreen.com

To get on the "Do Not Call" list:                  www.donotcall.gov

To cut down on junk mail:                          www.directmail.com/directory/mail_preference/

As consumers embark on what could be the largest financial transaction of their lives, it's important to work with a mortgage professional who clearly explains all available options and provides comprehensive solutions.

Mortgage Rate Update:

Why should what happens in Greece impact the mortgage rate that Joe Blow pays in California? US mortgage markets have been helped in two ways: the uncertainty in Europe has led to a flight to quality in safer investments, including US Treasuries and mortgage-backed securities (MBS), and  investors expect that continued economic turmoil in Europe will reduce US exports to the region, slowing US economic growth and reducing inflationary pressures. The United States does not have extensive trade and financial ties with Greece, and banks in this country own few Greek bonds. But other countries do, and the U.S. financial system could be adversely affected indirectly by the heavy exposure of other European countries to Greece. So, bad economic news is good news for interest rates.

All this has helped to keep mortgage rates stable and low this past week. Please pay particular attention to the low JUMBO rates. Jumbo loans and ARM's have shown much improvement in the past few weeks.
Posted in:General
Posted by Richard T. Cirelli on May 14th, 2010 8:17 AM



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