Investment propertyMortgage Applications Trigger Competing Offers
Put a stop to those postal mailed mortgage offers that begin
arriving soon after you apply for a mortgage or let them keep coming until
you find a better deal.
What with the tightening mortgage market putting the squeeze on
consumers scrambling to get the best loan, a recent Federal Trade Commission
alert, "Shopping For a Mortgage? Your Application May Trigger
Competing Offers," couldn"t be more timely.
Much to the chagrin of some consumer advocates, when you apply for
a mortgage and the lender pulls your credit report, your file lights up like
a runway for other companies with money to lend.
It"s not that the original lender is selling information about your
every move, creditors are taking advantage of federal law that allows credit
bureaus to identify you and other mortgage applicants to companies that want
to pitch their product to you often in the form of "prescreened" or
"preapproved" credit.
It"s the credit bureaus and other consumer credit reporting
agencies that legally sell to lenders and others lists of consumers who meet
certain criteria. Those criteria could include the fact that you just
applied for a mortgage, live in a certain ZIP code, have a certain credit
score, a certain number of loans and, to the creditor, appear ripe for an
offer.
The prescreened offers don"t affect your credit score or credit
standing -- nor do several or so credit applications for the same type of
credit within a short period of time. The offers also don"t guarantee you
credit. You"ll still be subject to a credit check and other application
procedures, depending upon the lender"s requirements.
However, if you"d rather do your own comparison shopping or rather
not be bothered by the offers, or both, call 1 (888) 567-8688 or visit OptOutPrescreen.com
and make it so.
These are the only two federally-sanctioned ways to stop the offers
from all federally-regulated credit bureaus and reporting agencies. Don"t
use sound-alike or look-alike websites and phone numbers. Don"t be lured to
other websites or telephone numbers by slick advertisements, catchy jingles
or official sounding come-ons.
When you contact the official resources, you"ll have to provide
certain personal information including your home telephone number, name,
Social Security number, and date of birth. The information you provide is
confidential, but is necessary and only used to process your request to opt
out. If you have a joint mortgage, both parties need to opt out.
Don"t enter any personal information until you"ve checked for
indicators the site secure -- a locked pad lock icon on your browser (in the
address bar, lower right hand corner or both) and a Web address that begins
"https". Fraudulent websites can imitate the logo of the service providing
security, but not the padlock.
Opting out of prescreened offers won"t affect your credit standing
or your ability to apply for credit, but within 60 days of signing up the
prescreened offers should stop.
You can opt-out from receiving the offers for five years or
permanently. You can also use the official website and telephone to opt-in
again, should you choose to do so.
You also can also join the federal government"s National Do Not Call
Registry to reduce related telemarketing calls you get at home. You can
also call (1) 888-382-1222 from the phone number you want to register. Your
number remains on the registry for five years, until it is disconnected, or
until you take it off the registry.
Finally, you may want to receive preapproved and prescreened offers
if you believe they are of value to you and you take the time to scrutinize
companies offering the deals.
Consumer advocates almost always say you should control your own
comparison shopping, but those who cash in on selling lists and buying them
say, not surprisingly, you can benefit from them.
"Benefits of Receiving Written Offers of Credit or
Insurance" explains the claimed benefits that come with the offers,
including offers that may not be available to the general public and offers
that help consumers comparison shop.
Whatever decision you make about prescreen offers, keep tabs on
what entries are made on your credit report.
Each and every year, you are also eligible for one free credit
report from each of the big three credit reporting agencies (Which means you
can get three free credit reports each year.) by visiting the one and only
federally-sanctioned website for this purpose, AnnualCreditReport.com. Credit reporting agencies other
than the big three also offer free reports.
Details of these provisions, those included in this story and
others are available from the FTC"sFair and
Accurate Credit Transactions (FACT) Act and Fair Credit Reporting Act
(FCRA) Web page, and the ongoing RealtyTimes.com series "Special
Report: FACT Act Amends Fair Credit Laws".