There is a disturbing trend involving clients who have applied for a new mortgage. The three major credit bureaus are selling your personal information to hundreds of mortgage brokers throughout the country as soon as your credit is pulled and a Mortgage Inquiry is Triggered. Your personal information is being sold without your consent. These brokers who are buying these trigger leads are generally "fly by night" companies that operate several states away and are solely interested in offering you a "bait and switch" mortgage offer. These companies will call you repeatedly and mail you solicitation after solicitation in hopes of deceiving you. Not only do these brokers offer terms that are too good to be true and misleading, they often times will tell you that they work for the company you have been dealing with and just need to gather some information to get paperwork out to you.

I want you to know that true mortgage professionals (one's who have been around for years, are licensed and are affiliated with a nationwide mortgage association like NAMB or NAMP are totally against this practice and have been lobbying to get this law amended or changed. Until then the three major credit bureaus CAN and WILL sell your information to any and all buyers.

The mortgage professional you choose should make you aware of this and should takes steps to help you fend off receiving those unwanted calls trying to Steal the loan file from the broker you've already entrusted your mortgage transaction to - They'll offer ridiculous low-balled rates with zero fees, etc. and can really cause confusion, stress and a lot of wasted time.  Sometimes resulting in lost opportunities to lock in a lower rate!

How do you stop this from happening in the future?

1. Add your phone number to the Do Not Call List. This can be done online by visiting www.donotcall.gov or by calling 888-382-1222. Rememberto make sure to add both your home and cell phone numbers.

2. Opt Out of Prescreened Credit Offers. This will stop creditors from viewing your personal credit information without your written consent. In addition, it will cut down on the junk mail (unwanted credit card solicitations). This alone lowers your chances of becoming a victim of identity theft. You can opt out by visiting www.optoutprescreen.com or by calling 888-567-8688.

I personally despise this practice by Experian, Trans Union and Equifax. I feel it takes advantage of not only the public, but also us as mortgage professionals in order to make a quick buck. The credit bureaus figured a way to recoup lost revenue after the Federal Government passed the bill that all consumers have a right to review what's being reported on their bureaus once every 12 months For Free. But obviously it's not totally free!  My hope is that enough "professional" mortgage originators and homeowners/consumers will quickly spread the word and thus stop this unscrupulous business practice.