Equifax’s Grip on Mortgage Data Squeezes Smaller Rivals
- 7 years ago
Equifax’s Grip on Mortgage Data Squeezes Smaller Rivals
Mortgage lenders need to know your credit standing when they consider whether to give you a loan,
and while other credit-reporting companies can provide a merged report, Equifax is a major go-to source for that information.
Even more troubling is a deal between Freddie Mac, the huge mortgage-finance company, and Equifax
that gave the troubled credit reporting agency an even tighter grip on the business of providing credit information.
Chad Wandler, a Freddie Mac spokesman, said that having access to a broad network of credit-report providers “has not been cited as a priority for those customers
who use our quality control tools like Loan Quality Advisor.” He added, “We will continue to listen to our customers to provide the functionality they need.”
Naturally, this does not sit well with independent credit-reporting companies.
It was, according to the company’s website, a “risk and eligibility assessment tool
that evaluates loan data to help lenders determine if a loan is eligible for sale to Freddie Mac.”
Naturally, a borrower’s credit history goes into this system.
That’s because, of the three major credit reporting agencies, only Equifax has a division, Equifax Mortgage Solutions,
that supplies lenders with what is known as a merged credit report.
“What we’re talking about here is to provide the consumer with a touch point of service
that is different than what you get from the bureaus,” said Terry Clemans, executive director of the National Consumer Reporting Association, an organization of credit-reporting agencies, employment-screening services and tenant-screening companies.
Mortgage lenders need to know your credit standing when they consider whether to give you a loan,
and while other credit-reporting companies can provide a merged report, Equifax is a major go-to source for that information.
Even more troubling is a deal between Freddie Mac, the huge mortgage-finance company, and Equifax
that gave the troubled credit reporting agency an even tighter grip on the business of providing credit information.
Chad Wandler, a Freddie Mac spokesman, said that having access to a broad network of credit-report providers “has not been cited as a priority for those customers
who use our quality control tools like Loan Quality Advisor.” He added, “We will continue to listen to our customers to provide the functionality they need.”
Naturally, this does not sit well with independent credit-reporting companies.
It was, according to the company’s website, a “risk and eligibility assessment tool
that evaluates loan data to help lenders determine if a loan is eligible for sale to Freddie Mac.”
Naturally, a borrower’s credit history goes into this system.
That’s because, of the three major credit reporting agencies, only Equifax has a division, Equifax Mortgage Solutions,
that supplies lenders with what is known as a merged credit report.
“What we’re talking about here is to provide the consumer with a touch point of service
that is different than what you get from the bureaus,” said Terry Clemans, executive director of the National Consumer Reporting Association, an organization of credit-reporting agencies, employment-screening services and tenant-screening companies.