In Kenneth R. Harney’s column Credit Bureaus Share Your Loan Application [Washington Post], he describes how the credit agencies actually notify your lender’s competitors within 24 hours of a mortgage application. Most assume this is private information, but apparently it is not.

credit scores, open mortgage balances, loan-to-value ratios, monthly mortgage payments, revolving debt balances and other personal financial data

The big 3 credit agencies are:

Spokesmen for Equifax and Experian confirmed that their firms do offer 24-hour “trigger” lists of applicants for mortgage credit. TransUnion did not comment on whether it provides overnight contact data. Equifax and Experian said their marketing of overnight mortgage inquiry leads violated no federal or state rules and is merely a speedier version of their routine sales of lists for other preapproved offers of credit.

Its very annoying but listen to this web site with the sound on – it explains how easy it is for lenders to get information about your mortgage application: Mortgage Inquiry Data Inc. This firm uses Equifax as it credit source and then re-packages the information to sell to lenders.

I find this all very unnerving. It seems to me that consumers should be given the ability to opt out. Where’s Sarbanes-Oxley and Gramm-Leach-Bliley when you really need them?

4 Responses to “Pulling The Trigger: Credit Agencies Share Your Mortgage Info For A Buck”

  1. Jerry Linebaugh says:

    I think this is horrible. My clients a referral based and this is very unethical on the part of those wanting to make a profit since my customers did not ask for these offers.

    Jerry Linebaugh American Home Alliance Baton Rouge, La

  2. Steven Mansour says:

    This is not the right way of doing business. I work very hard on building my clients on referrals and for somebody to contact that person the next day is not right.

  3. John Cohen says:

    These lazy-lying individuals call your customers and they will tell them anything to get application going. They will deface your Company’s good name, just for buck. This has to stop. Consumers are getting tired of this dirty trick.

  4. Chris Stewart says:

    What all of you have neglected to realize is that this process virtually assures that the borrower ends up with the best offer. If you are worried about losing the referal business that you have worked so hard to cultivate, maybe you need to make sure that you have the best offer available on the table for your customers (instead of being greedy). You should also be sure that it is your customer’s best interests that you are concerned with (fiduciary responsibility??), and not your own. If you don’t do these thing, I am going to be there to take your business and your referal business will forever and after be mine.