When Lenders Compete, You Lose
Your mortgage application may trigger an avalanche of annoying credit offers.
If you’re in the market for a mortgage or a new home, here’s something you’ll probably want to know: Even just shopping for a loan may bring you a huge response from potential suitors trying to solicit your business. And unfortunately, the Federal Trade Commission, which keeps an eye on consumer-credit affairs, doesn’t think it has the authority to do much about it.
The Washington Post recently described the phenomenon. Evidently, as lenders have seen their mortgage volumes decline, they’ve started looking for new leads to find mortgage shoppers. In response, up sprang a new market for these so-called “trigger lists,” which report information about people who have applied for a mortgage within the previous 24 hours.
Sphere: Related Content