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Question about Selling Mortgages - Charles?


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Hi everyone-

Some may have seen my post yesterday regarding a LandAmerica inquiry that recently popped up on my credit report. I did a bunch of research and got to a shady company in Utah called Mortgage First, LLC. They used to be called TriStar Contracts. From what I can gather, they're a sleezy sub-prime shop. Here's what Land America told me:

Land America spoke with Mortgage First about the inquiry. Mortgage First told Land America that they pulled my credit to determine whether or not they wanted to buy my mortgage from the current servicer (Wells Fargo). They explained that they decided not to buy the note, and that my loan papers specifically state that companies can pull my credit to see if they want to make an offer on my mortgage.

I have gone through every piece of documentation for both of my mortgages and nowhere does it state that companies can randomly pull my credit to determine if they want to buy my loan. Now, my mortgages have been passed around more than syphallis at a whorehouse over the past year and a half (New Century, Ocwen, ASC, Wells have all had them at one point or another, which is a whole different issue), but 2 things really trouble me: 1) This jackhole at Mortgage First pulled my credit and says they have permissible purpose to do so; and 2) He made it sound like he's got copies of my loan paperwork, since he stated what he claims to be language in the contract.

Any thoughts? The inquiry, of course, is on Experian, so getting rid of it is next to impossible, making me all the more upset!

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The current owner is probably looking to sell the note. When they sell notes, they are bundled up into packages. The potential purchasers will randomly select loans to review and as part of the process selected yours to look at. They do this to price the package.

Re-read your loan contract. It will state in the section called "Transfer of Servicing Rights" or something like that what the potential purchasers can and cannot do.

If you want, write a letter to Experian, LandAmerica and Wells Fargo and ask that the inquiry be removed. Tell them it was absolutely unauthorized and if you need to, threaten to sue the little mortgage shop in Utah with a complaint to the Utah Dept. of Financial Institutions.

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.......I have gone through every piece of documentation for both of my mortgages and nowhere does it state that companies can randomly pull my credit to determine if they want to buy my loan....

My $00.02

I'm a L/O that deals with clients everyday with simular issues. In you loan documentation - there's an "authorization to release information". That you signed when you did the original application for your loan. Also at your closing doc's, you should of signed identical paperwork. This gives them authorization to run your credit. If they repeatedly run it, contact them individualy and ask why - their contact information will show on your report.

As for removing your inquirys, I find Experian to easiest to use to disbute them off. Either email or send a letter, mentioning you went to the local police station and filed a police report of someone using your SS# without your premission.

FYI: I still have Wells Fargo now with my mortgage, after my refi with them 5 years ago.

Good Luck.......

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OP...

You didn't say if this was a hard or soft INQ.

Too many times here I have seen people throwing fits that some creditor did an unauthorized pull and yet the INQ was soft. Those don't hurt you so you shouldn't care....

If it was a hard....that I would have a problem with as well.

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Thanks, all. It was a hard pull, and yes, it affected my score. The only INQs I have are on Experian -- haven't been able to get any of them off of there -- so I took a 10 point hit.

And as I said in my original post, in my loan documentation, in the "authorization to release information," it's worded specifically so that current or future loan servicers (future meaning those who WILL service the loan in the future, not those who MIGHT service it) can have access to my information. I have had this language reviewed by both my mortgage broker and my attorney.

10 points might not be much, but I'm tired of these cmopanies ****ing with consumers and not being held accountable. Hell, LandAmerica couldn't even tell me the name of the company that was given my information!

Anyway...

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I understand your frustration and agree with you about the inquiry. PP is provided by the documentation only if a sale is definite, not pending. Even then, it's questionable since the loan is established. Personally, I've only seen this during the approval process when sale on the secondary market was due to occur immediately after closing, not years down the road... (But that's just me).

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