Sens. Feinstein and Martinez aim to curb loan abuse

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(02-06) 11:53 Pacific Time San Francisco (AP) --

In an effort to control insulting loaning patterns that have got got contributed to the nation's subprime mortgage crisis, Senators Dianne Feinstein and Mel Martinez have introduced a measure that would set up people criteria for mortgage agents and loaners .

The bipartizan bill, introduced Wednesday in Washington, would guarantee that all mortgage people are trained in legal facets of lending, ethical motive and consumer protection before they are granted a license.

Feinstein, a Golden State Democrat, and Martinez, a Sunshine State Republican, stand for states difficult hit by the current subprime mortgage and foreclosure fiasco wreaking economical mayhem across the nation.

Confused by credit come-ons?

"When it first started happening, I was gap the mail and I panicked,"
said Bradshaw. Incrimination the three major recognition bureaus. When a mortgage agent bank checks a
consumer's credit, that broker's hunt is coded with information indicating
that the hunt is occurring because the consumer have applied for a place loan. Third-party companies purchase and sell the information, known as "trigger leads,"
to other recognition companies, who then may name or mail the consumer. To be sure, some consumers may welcome the chance to loan-shop. But the problem, mortgage agents say, is that the phone calls may not always be
entirely clear about the fact they don't arise from the consumer's
original mortgage company. If a consumer isn't aware of what's happening, the
consumer may give further information to the companies -- triggering another
credit bank check and throwing confusion into the loan process. For its part, the recognition industry intimations that mortgage agents may just have
sour grapes. "A big portion of it is the fact that the mortgage marketplace have gone south in
the past two or three years," said Norm Magnuson, spokesman for the
Washington-based Consumer Data Industry Association, a credit-industry trade
group. "Now with fewer clients out there . . . I believe it's purely a
competitive issue." But for consumers such as as Bradshaw, the brazen recognition come-ons are more
than just an annoyance, even though her boyfriend, a mortgage broker,
explained what was happening. Competing loaners have got got more than than just consumers' names, telephone Numbers and
addresses: Some of the companies buying gun trigger listings can contract their
information petitions so they only acquire the name calling of marks in specific areas
or have specific unfastened loan balances or recognition scores. That agency they know
even more than about the marks they call.Despite the indignation of consumers, the
practice is legal. According to the Federal Soldier Trade Commission, which generally
has credit-industry oversight, the Carnival Recognition Coverage Act allows
Experian, TransUnion and Equifax, the three major recognition bureaus, to resell
consumers' personal information to brokers. The FTC even states it warns
consumers that shopping for a mortgage can trip competing offers. The place of the Sunshine State Association of Mortgage Brokers is that trigger
leads are hazardous -- not just because they're a misdemeanor of consumers' privacy,
but also because they may be fertile land for personal identity thieves. "We happen gun trigger takes to be extremely consumer unfriendly," said Ritch
Workman, the association's Melbourne-based president. "They heighten the
opportunity for felons to steal identities." Workman's antipathy for gun trigger takes went from professional to personal in
January, when he applied for his ain mortgage. He said he received a phone call from
someone fishing for concern fewer than 24 hours later. When the adult male on the
phone said he was calling from Workman's mortgage company and needed a few
more inside information to finish the application, Workman said he asked the adult male "Oh,
really? Which one of my employees are you?" The adult male quickly hung up. Workman said that if he'd been less savvy, he might have got got given out his
Social Security figure -- enough information for the adult male to have a caput start
on doing some harm to his recognition rating. Consumer advocators are scrambling to find how to cover with the
possibility of personal identity larceny via gun trigger leads. "The large trifecta, with personal identity theft, is Sociable Security number, day of the month of
birth and your address," said Richard Schram of Consumer Recognition Counseling
Service of Central Florida. "Anybody who have that tin take electronic
advantage of you." To battle the problem, the National Association of Mortgage Brokers has
created a booklet for mortgage agents to manus out, Workman said. The
brochure states clients that if they have got phone phone calls from competing brokers,
it's not because their agents have sold their personal information.Magnuson,
of the Consumer Data Industry Association, topographic points the burden on consumers to
place themselves on assorted listings to avoid calls or mail tied to their credit. But for Bradshaw, that's not quite enough. "People have got enough to worry about with the lodging industry. There's
enough existent danger out there correct now," said Bradshaw. "They don't necessitate extra
danger." Anika Myers Palm can be reached at 407-420-5022 or apalm@orlandosentinel.com

Mortgage Brokers - Should You Use One?

Mortgage brokers have become more popular for consumers to work with than ever before. Rather than do the research, and investigating of available mortgage loan options themselves, many are choosing to let a mortgage broker do the leg work.

What exactly does a mortgage broker do, and what are the advantages and disadvantages of working with one?

It's very simple really; mortgage brokers find, and acquire loan money from lenders, tack on a little something for their time and trouble, and then sell the loan money to the borrower. They are the consummate middlemen in the mortgage loan process.

Now, you might be asking yourself why use and have to pay for a middleman when with a little effort you can do this yourself?

Let me try to explain.

Say for instance, you are looking to buy a new washing machine. You shop around visiting the major washing machine manufacturers that are accessible to you, such as Whirlpool. You have looked at a number of different models, but overall what you have seen is not that impressive. You can't seem to find one that offers all of the different features you want.

As a result, you find yourself going to a large consumer products retail store. Best Buy offers Whirlpool washing machines too, but they also offer various types of washing machines from a variety of other manufacturers. Having access to many different types of washing machines all in one place, makes Best Buy your best bet to find a washing machine to fit your specific needs.

Similarly, by going directly to the lender they will have access to only their products, which may or may not be the best product to meet your needs. However, should you go to a mortgage broker with access to many different lenders, and who by the way, is considerably more familiar with the lenders and their products than you could ever be, there is a strong chance you will be able to find just what you are looking for in a mortgage loan. The advantages of dealing with a broker are especially valuable to borrowers who are searching for something other than the standard ARM, or fixed rate mortgages.

Another terrific benefit offered by a mortgage broker is the fact that they will take care of all the necessary paperwork for you. And should you have any questions, the broker will be much easier to contact than a loan officer.

Is there a downside? There can be. Because there is very little regulation at both the state and federal level, a dishonest broker may give you a bad deal. You can virtually eliminate this risk by getting a mortgage broker recommendation from your local Better Business Bureau, your states Real Estate Commission, perhaps even your lawyer, or banker.

Copyright 2007 Carl DiNello