Credit Campaign, Helpful Tips, Mortgage

Borrowers Beware Don’t Be Exploited by the Credit Bureaus

March 22, 2011 by · 2 Comments 

Young Woman Shocked by Her Web Browser by Ryan LaneWhile it’s an illegal breach of privacy for real estate agents or mortgage originators to sell your credit information, it is perfectly legal for credit companies to do so.

For a price ranging anywhere from $25 to $100, your name and certain specifics about your credit report – including your address, phone number, mortgage history, and even your FICO score range – are sold by the credit bureaus to mortgage companies. The result is an onslaught of unsolicited phone calls and junk mail as soon as you apply for a home loan.

Unfortunately, no legislation exists to prevent credit bureaus from profiting at your expense. As a “trigger lead”, you are simply at the mercy of any number of marketing campaigns designed specifically to discredit the mortgage professional you’ve come to know and trust.

That’s why, prior to applying for any loan program, I suggest that you visit to opt-out of future credit bureau solicitations and avoid this problem altogether. Not only will you avoid the hassle of telemarketers, but by opting out you could potentially add 10 to 15 points to your credit score!

In addition, if you do happen to receive phone calls from solicitors, ask them to place your name and number on their Do Not Call list. All telemarketing companies have their own internal Do Not Call list that they must abide by. Be sure to take down the name of both the company and the individual who made the call, and to let the solicitor know that you’re doing so. This way, you will have grounds to seek action against them, should they call again.

As you embark on what is likely the largest financial transaction of your life, you should place yourself in the hands of a professional – not some transactional loan officer who purchased your information from the credit bureaus. Remember, only a limited number of sources exist for lenders to obtain mortgage money, so it’s extremely unlikely that a borrower will find an unbelievably low rate without an unbelievably high cost.

If, however, you are curious about the programs these mortgage companies have to offer, then listen to what they have to say. Once they’ve offered you a rate that seems too good to be true, ask them a question or two from the following list.

  1. Where did you get my information? Who gave you permission to call me, and how much did you pay for my information?
  2. Why should I willing to speak with you when you weren’t referred to me by someone I trust?
  3. How are mortgage interest rates determined, and what impacts the rates that you are offering me today?
  4. What impact does the Federal Reserve have on the rate I will be paying for my first mortgage with you?
  5. What ar the specific closing costs associated with the rate and program you’re offering me today?

If you have any questions about your credit and trigger leads, or any other part of the home loan process, please call or text me at 512-522-7284 to discuss your personal situation and your home loan options!

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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2 Responses to “Borrowers Beware Don’t Be Exploited by the Credit Bureaus”
  1. mivideo says:

    So it sounds like when you go to Lending Tree or some of the others brokers that make claims of “offers from competing lenders”, you are still not necessarily getting true competition. But rather a lead generating system where the your private data is gathered, shopped around, and re-sold to lenders for a fee. Is that how it works?
    I would think that consumers would be angry how their credit information is syndicated on the open market like some commodity product.

  2. Most borrowers really do not know that Lending Tree is just an lead sourcing site for lenders. Furthermore, this practice of trigger leads is not limited to lead aggregators like Lending Tree. It is a very common practice that has negative ramifications on privacy. As the cliche goes, “you don’t know what you don’t know!”

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