topic Re: opt out? in Mortgage Loans

opt out?

Anonymous — Mon, 12 Oct 2009 04:36:30 GMT

How do you opt out before applying for a mortgage. Ive heard that mentioned here alot.

Re: opt out?

llecs — Mon, 12 Oct 2009 05:07:00 GMT

https://www.optoutprescreen.com/?rf=t

Opting out inhibits baddies like CAs from sniffing around your reports at mortgage time. The CRAs sell your info and if so subscribed, the CA will get alerted if an inquiry appears from a mortgage lender or the like. In turn, the CA might opt to report knowing that most lenders will require you to take care of that debt first. Opting out prevents the CA from receiving that info.

Re: opt out?

kai_1103 — Tue, 13 Oct 2009 20:50:25 GMT

Could someone clairify...

I have nothing that might catch up with me, so there is no NEED for me to opt out to avoid those issues. But it sounds like a smart thing to do anyway- are there any negative aspects of this? Any at all? Or simply no more junk mail?

Re: opt out?

XAVIERSMAMA — Wed, 14 Oct 2009 14:12:41 GMT

OPT OUT! OPT OUT! OPT OUT! OPT OUT! If I haven't been clear enough, OPT OUT! Even if you don't think you have anything out there, opt out. CRA's sell your info to CA's as soon as you have a mortgage inquiry pop up. Junk debt buyers purchase this list and comb it looking for names. I took a first time homebuyer class and they checked my credit a year and a half ago and the inquiry shows on my CR with "mortgage" in the name. I have had two debts that was discharged in by BK that have appeared on my CR 6 different times between the two of them over the past 14 months. Even though the debts are not valid it's still a pain to dispute, forward the proof and wait for it to be deleted only to have it pop up a few months later under a different CA. The CA's know that some lenders will require all disputes to be removed and collections paid before closing so they do this in the hopes that you will just give in and pay them off so you won't lose your dream home. It's safer to just opt out in my opinion.

Re: opt out?

kai_1103 — Wed, 14 Oct 2009 16:36:20 GMT

Yes ma'am!!

I opted out. Thanks for your advice!

Re: opt out?

ssghandless — Fri, 10 Sep 2010 15:11:25 GMT

Wow! thank you I was about to get a home in the next few months thank you so much for sharing this information!

Re: opt out?

happy0510 — Fri, 10 Sep 2010 17:07:12 GMT

I'm opted out and have a lot of skeletons in my closet (over 7 years old) and have not heard anything whatsoever or come across any issues since applying for a mortgage. I applied once in February this year and then again last month they re-ran a whole new report.

OPT OUT!!

Re: opt out?

ssghandless — Fri, 17 Sep 2010 20:00:56 GMT

did you qualify with a 679? if you did what was the rate?

Re: opt out?

happy0510 — Mon, 20 Sep 2010 23:51:25 GMT

Yes, approved FHA. I haven't found a house so I haven't locked in, but my LO says i'll get the market rate. 4.5ish or lower

Re: opt out?

Anonymous — Mon, 27 Sep 2010 20:56:10 GMT

Will opting out hurt me if my file has been through underwriting already? I know that they will pull my credit one more time before closing which is about 2 weeks away. Will this help or hurt me?

Re: opt out?

llecs — Fri, 01 Oct 2010 15:54:42 GMT

@Anonymous wrote:

Will opting out hurt me if my file has been through underwriting already? I know that they will pull my credit one more time before closing which is about 2 weeks away. Will this help or hurt me?

It wouldn't hurt you, though I wouldn't do it at this point. CAs pay a fee to subscribe to your CR while not opted out. Anytime there's a major inquiry, like for a house or car, the assumption there is that you have the money to pay them. Therefore, once your lender hits your CR with an inquiry, that's a cue for the CA to go ahead and report because they know you'll likely have to pay them per the terms of your lender.

Since your are in underwriting and the inquiry already appeared for all to see, there's no need to opt out. If a CA subscribed, they already know about the initial inquiry from your lender. Opting out won't stop them from reporting if they had the intent to do so. And not every CA subscribes and not every CA will report even if they did subscribe. I would ignore it.

Re: opt out?

sr383 — Mon, 22 Jul 2013 17:58:59 GMT

I hate to resurrect a dead thread, but this looks like the best one I've seen that tackles this issue from scratch (rather than as a side note to some other conversation). Frankly, I'm surprised this topic isn't stickied. ...

I also have a question: Couldn't opting out be a red flag, in itself? If junk CAs are data mining, couldn't they observe that a person who was on last month's list is suddenly gone? Could they not infer that a mortgage app is pending and, thus, go ahead and reach out their hands?

Re: opt out?

cclee — Mon, 22 Jul 2013 23:40:26 GMT

From what I understand and it's explained in the above post. The credit reporting agencies actually notify the CA when an inquiry for a major purchase is reported. So it's not like the CA is watching your report every month, instead they are being informed by the credit reporting agency. Nice, right?

Re: opt out?

Anonymous — Tue, 23 Jul 2013 00:00:54 GMT

I opted out in May and still got 2 old junk debts pop up in June, they were just posted to my credit report over the weekend....so there is more to this than we know...something, someone, is reporting even after opting put.

Re: opt out?

sr383 — Sat, 27 Jul 2013 19:32:21 GMT

Well, I guess it can't hurt. I have officially opted out. Five days from now (according to the opt-out website), I can offically get this train moving and start the preapproval process. ...