Bad Credit Agency

Client Consent Request by a Mortgage Broker. Allows (unlimited number of) lenders to obtain my credit report?

Hi All, A mortgage broker I met requested that I sign a client consent that includes the following sentence: "Each lender considering my applications may obtain personal information about me from consumer reporting agencies, credit bureaus, and real estate appraisers". Is this a common request/statement? I guess the only concern is you do not want an unlimited number of "potential lenders" to obtain your report from consumer reporting agencies as this may affect your credit score. The above statement allows this to happen in theory. HOWEVER, if this is a common request/common way of phrasing it, by mortgage brokers(?), then I have no issue signing.. THANKS.

Public Comments

1. Yes, this is quite normal. However, most brokers do not go directly to the big three credit agencies of Experian, Transunion, and Equifax. Instead, most brokers obtain what is called a "three bureau merged report" from one of several companies that offer this type of service. Generally, the broker uses a service from companies such as "Informative Research" or "First American Credco". These companies are usually "approved" companies by almost every lender the broker uses and so consequently, your credit is only accessed once, and each lender accepts the credit report provided by the broker. Most brokers don't want to have your credit re-pulled over again for a couple reasons. One, it costs money, and two, it may lower your credit score and jeopardize the brokers potential commission on your loan. So, again, don't worry, this is a normal / common statement by mortgage brokers.