Credit Report Agencies Sharing Mortgage Loan Applications
With the hot competition for mortgage applications, some credit report agencies are sharing your mortgage application data with competing lenders.
And it's not the fault of your lender, either.
Some firms such as s Mortgage Inquiry Data Inc. of Coral Springs, Fla., offer lenders nationwide access to consumers who had applied for a mortgage loan within the past 24 hours.
The reason for this, is so they can offer you a better loan - or so they say. But the basis behind this is to acquire more revenue by selling your application to other lenders.
Intellidyn Corp., based in Hingham, Mass., has an overnight IntelliAlert program. For platinum application buyers who commit to a monthly minimum purchase of $31,395 worth of mortgage leads, Intellidyn promises to keep them on top of any mortgage inquiry, anywhere, anytime they want.
Although this may help you receive a better mortgage loan, it does have drawbacks. One particular consumer recently applied for a home equity credit line from a large national bank. Shortly afterwards, the consumer was bombarded with phone calls by mortgage lenders who claimed to have been notified by the lender.
This can make it difficult for consumers to know which phone call is indeed from the lender which they had applied.
Spokesmen for Equifax and Experian confirmed they do offer 24-hour lists of applicants for mortgage credit. TransUnion did not comment.
Of course, the person who should say if it's wrong for credit report agencies to sell their applicant data, basically depends on whether or not the consumer believes there was a privacy violation, and whether or not the 'competitive' offers helped secure a better loan.
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