Bank vs Direct Lender Myths…

We continue to hear horror stories about Borrowers who had their identity or certain confidential information used without their authorization resulting in damaging their credit and severely causing them future problems…even debt they had to pay that was not theirs. Getting a mortgage Santa Clarita from a Bank is your best option.

Borrowers fill out an online application for a new mortgage and the phone starts ringing. Unfortunately, if the person on the other end of the phone is not an FDIC Insured Bank, your information may be laying around an office or sold to offshore identity theft pirates.

The Borrower is told by the phone person…”Oh, we are a Direct Lender’. That is supposed to make you feel confident in giving out things like social security numbers and faxing tax returns. STOP…don’t be fooled. A Direct Lender- non Bank is just a Broker who owns a mortgage company who has a line of credit from someone to make loans. This is called a Warehouse Line. They make a loan to you and fund it from their line of credit then sell it to get their line money back plus their Broker commission.

Mortgage Santa Clarita

Part of the process of a Bank getting and keeping their FDIC certification and insurance is keeping Borrowers information 100% Safe. The length to protect you is far reaching and to great lengths. As an example, if a Banks Loan Officer gets Bank emails on their cell phone then the cell phone must have password protection EACH and EVERY time emails are read. That prevents a cell phone laying around, you sending something confidential to your Bank loan officer and someone else reading the email. No fax machines are sitting around the office for a tax return to come in for all to see and every fax requires a password and personal pin to get to see a fax the Borrower sent. Even the Loan Officer’s computer is monitored. The Federal FDIC regularly sends in auditors to see the rules are strictly adhered to.

Then There is The Opposite

Totally speaking from a secure information stand point…we have heard the horror stories and cannot stress the importance of only working with a FDIC Bank to keep your information safe. When you get that call…think about where your information is going. Will it be sold, will it be copied, used incorrectly?

What sounds like a good deal could cost you much more than you thought.