If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Now that the real estate slowdown has occurred and the mortgage companies are unable to use 100 percent loans for the most part, there is some angst in the mortgage world. To generate more volume mortgage companies are using mortgage prescreening tricks to try to get new customers. And it is hurting more and more people.

Mortgage prescreening occurs when you apply for a mortgage. One of the first steps is a credit check with the 3 major credit houses. When that credit check happens, something else evil also occurs. 

The credit agencies, Equifax, Experion, and TransUnion, immediately turn around and sell your credit information to other mortgage brokers. And when I say immediately, it occurs within a matter of hours.

The selling of the information by credit agencies to mortgage brokerages is called the Trigger List.

And what happens next is what hurts thousands of people every month. Their phones start ringing with mortgage offers from desperate brokers who just spent a good deal of money on a lead about you. And they will make offers of lower rates and better terms that may or may not pan out.

But if you apply with these folks odds are the deals will not go well for you as the multiple applications for mortgages will impact your credit rating and potentially cause the initial loan to fall through.

We will talk about how to avoid mortgage prescreening in a future post and what the federal government is doing about it.

Related posts:

1. Mortgage Trigger Leads May Be Shut Down By Federal and State Laws
2. Applying For a Mortgage Makes Credit Agencies Money
3. FTC Addresses PMI Mortgage Insurance Abuses
4. Banks Gain Market Share in Mortgage Market
5. ABN AMRO Loses Records For 2 Million Mortgage Customers