How to Opt Out from Credit Offers

Posted by: Peter Coy on April 12, 2006

Thanks to David Porter at Pacesetter Mortgage in Michigan for explaining how you can get your name taken off the list for getting unsolicited loan offers.
David Porter.jpg
Here’s a link to the official opt-out site. This is related to yesterday’s post about how lenders deluge you with loan offers when they catch wind from the credit bureaus that you’re applying for or even just inquiring about a loan.

Reader Comments

Ginny Ferguson, CMC

April 12, 2006 1:48 PM

According to the National Association of Mortgage Brokers, there are two issues regarding the sale of pre-screened target lists by the CRAs. The first is whether firm offers of credit can even be made for a mortgage to a prescreened target list consumer by any lender? So is prescreen target list activity even appropriate for the mortgage industry? NAMB does not believe that any lender can make a "Firm Offer" of credit regarding a mortgage without verifying the specific facts about the consumer's financial situation and the information regarding the property to be used as collateral. Without the capability to make a firm offer of credit the lender does not have permissible use to access pre-screened lists based on mortgage inquiry triggers or anyother trigger.

The second issue according to NAMB is what appears to be the sale of these pre-screened target trigger lists to Lead Generation Companies, who are then selling the information to the highest bidders. How can the CRA certifiy that the end user has a permissible purpose and the right to access this list when that company is not making a "firm offer" of credit and is often times selling the data to companies who are not capable of making a "Firm Offer" of credit because they are not the actual Creditor funding the loan. This creates two problems: a violation of the consumer's privacy and the huge potential for the consumer's sensitive data to be misused or identity theft to occur because an unauthorized user under the Fair Credit Reporting Act has purchased the information from a Lead Generation Company. NAMB has raised these concerns with the FTC and with representatives of the national Consumer Reporting Agencies, we are awaiting their feedback.

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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