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View Full Version : Credit Bureaus sell leads?



Taylorman
06-19-2007, 11:12 AM
Is it true that when a mortgage lender pulls your credit, the credit bureaus can sell the borrowers info?

dunaholic
06-19-2007, 11:21 AM
They are called trigger leads...And yes, they sell a lot of them. When you have your credit pulled by a mortgage company, you will start to receive a lot of mailers and sometimes a lot of calls from telemarketers.

Taylorman
06-19-2007, 11:40 AM
How the hell can that be legal with all the privacy laws? Im a broker and we have to get privacy disclosures signed by the customer.

cdog
06-19-2007, 11:50 AM
How the hell can that be legal with all the privacy laws? Im a broker and we have to get privacy disclosures signed by the customer.
You can contact the credit bureaus and file non solicitation/privacy paperwork to stop the selling of your info. It's one of those we'll do it until you ask us to stop deals.

HM
06-19-2007, 11:55 AM
Yes...expect the wolves to be unleashed on anyone who has their credit pulled It varies on the intensity by geography. If someone is not on the Do Not Call list, they can expect their phone to literally ring off the hook.
What we do is opt our clients out of the trigger leads and if they are not on the Do Not Call list, we go online and put all their numbers on that list. We then run credit about 7 business days later. This has worked very well. Most of my clients are not my clients because of rates and fees, so it is really not a threat for my niche business. But, it was the inconvenience factor of having to deal with phone calls and crap in the mail.
There is some litigation going on as HUD allowed this kind of information to be sold with the requirement that the people offering to do a loan must be offering actual credit that the consumer is ALREADY qualified for....meaning the lenders say...here is our loan offer and all you have to do is sign - like the personal credit lines that Beneficial and Citibank offer people when they send a check in the mail that all you have to do is deposit the check....no "On Approved Credit" requirements. The vast majority of these trigger leads are being sold illegally as no one in the mortgage business is offering a qualified loan to consumers that all they have to do is sign/deposit the check.
The major mortgage/lending associations are fighting these trigger leads as this way of doing business continues to degrade an industry already thought to be lower than selling used cars.

Lavey5150
06-19-2007, 01:08 PM
Trigger data sucks...period.The retention department at the current lender will also get notice of this mortgage inquiry, and then take the opportunity to call your borrower that is already on board w/ you and feed them a line of bull....and the borrower cancels......and that will piss you off.......you can pull non-mortgage consumer data for the initial score and re-run mortgage credit data prior to docs, and order the demand last................