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Answers (11)
- Dallas Banker
- Contributions:335
Greg - The simple answer to your question should be "no." In my opinion, it was unethical, if not illegal (depending on the state) to include the realtor on that email. Even in states where it is allowed, a realtor can be updated throughout the process without sharing your credit score. I simply cannot fathom sharing that information without your permission.
As others have stated, there seems to be more to the story. It seems that you were upset when you didn't get a lower rate when rates went down last week. Had you already authorized the loan officer to lock the loan before Friday? If so, he can't just wave his magic wand and give you a lower rate just because rates went down. It's not a matter of adjusting; a lock is a commitment to the underlying investor and is not to be taken lightly. I'm not excusing the loan officer's actions, but I do understand where his/her frustration might be coming from.
As others have stated, there seems to be more to the story. It seems that you were upset when you didn't get a lower rate when rates went down last week. Had you already authorized the loan officer to lock the loan before Friday? If so, he can't just wave his magic wand and give you a lower rate just because rates went down. It's not a matter of adjusting; a lock is a commitment to the underlying investor and is not to be taken lightly. I'm not excusing the loan officer's actions, but I do understand where his/her frustration might be coming from.
- Pasadenan
- Contributions:21466
It appears that we are not being given all the details here...
It is clear we are talking about a property in escrow, that already has a closing date in the contract with consequences if the closing date is not met.
It is not clear if the appraisal was done or not, nor clear if the rate was already locked, nor clear if the borrower is in negotiations with multiple lenders, nor clear how many days are left before the close of escrow.
Loans cannot be underwritten, approved, and funded in just a few days. If the loan officer has reason to believe that the borrower is delaying the process sufficiently to miss the escrow close deadline, the loan officer really has an obligation to let the Real Estate agent know there might be a problem. It isn't necessary to disclose the range of the FICO score to do that, but if that is what is causing the delay, that may have been the reason the loan officer did it the way it was done.
If someone told me that the FICO score was below 740; I would typically assume 730 or 735, otherwise why not just say it is below 680?
Zillow provides quote trend data for 30 year fixed with 680+ FICO and 80% loan to value ratio or lower (20% + down). But for that FICO range, they have separate ranges for quoting for:
680-699, 700-719, 720-739, 740-759, and 760+
And typically it is the middle FICO score used. But it is not just loan to value ratio, and FICO score, and amount of the loan, and location of the property that determines rates and qualifications, but also debt to income ratio.
Sure, the median quote on Zillow has been about 4.6% this week, but that says nothing about fees, nor whether you qualify, nor whether it can be funded by the escrow close deadline, nor whether you might need mortgage insurance...
You may be upset, but there is nothing your real estate agent can do with a FICO score, even if the agent has it.
The real question is whether you want to close escrow on time, or risk paying penalties, or worse, having the contract terminated with you losing your earnest monies as well as your inspection fee, appraisal fee, and loan application fee, and maybe even losing the $8k federal government giveaway.
The time to shop for a loan officer is not the week before escrow closes.
It is clear we are talking about a property in escrow, that already has a closing date in the contract with consequences if the closing date is not met.
It is not clear if the appraisal was done or not, nor clear if the rate was already locked, nor clear if the borrower is in negotiations with multiple lenders, nor clear how many days are left before the close of escrow.
Loans cannot be underwritten, approved, and funded in just a few days. If the loan officer has reason to believe that the borrower is delaying the process sufficiently to miss the escrow close deadline, the loan officer really has an obligation to let the Real Estate agent know there might be a problem. It isn't necessary to disclose the range of the FICO score to do that, but if that is what is causing the delay, that may have been the reason the loan officer did it the way it was done.
If someone told me that the FICO score was below 740; I would typically assume 730 or 735, otherwise why not just say it is below 680?
Zillow provides quote trend data for 30 year fixed with 680+ FICO and 80% loan to value ratio or lower (20% + down). But for that FICO range, they have separate ranges for quoting for:
680-699, 700-719, 720-739, 740-759, and 760+
And typically it is the middle FICO score used. But it is not just loan to value ratio, and FICO score, and amount of the loan, and location of the property that determines rates and qualifications, but also debt to income ratio.
Sure, the median quote on Zillow has been about 4.6% this week, but that says nothing about fees, nor whether you qualify, nor whether it can be funded by the escrow close deadline, nor whether you might need mortgage insurance...
You may be upset, but there is nothing your real estate agent can do with a FICO score, even if the agent has it.
The real question is whether you want to close escrow on time, or risk paying penalties, or worse, having the contract terminated with you losing your earnest monies as well as your inspection fee, appraisal fee, and loan application fee, and maybe even losing the $8k federal government giveaway.
The time to shop for a loan officer is not the week before escrow closes.
- wetdawgs
- Contributions:26833
"do other lenders know that your credit score is below 740?" Does this phrase tell me that your credit score is 739 or 620 or 520? No one who heard this phrase knows either. I sure don't. Therefore, they've not released your credit score.
Applications fees usually aren't refundable, and as they've not shared your credit score but merely whether you are above or below a certain line, why do you wish to move on? How does your Realtor having this knowledge cause you damage?
Applications fees usually aren't refundable, and as they've not shared your credit score but merely whether you are above or below a certain line, why do you wish to move on? How does your Realtor having this knowledge cause you damage?
- Nathan Wolf, "natewolf"
- Contributions:1825
They did not "share your credit score" as they did not disclose your score. Frankly, most people have a score that is "less than 740". So, I'm not really clear on why you would be offended.
As for privacy, yes you have a right to privacy and they should not discuss with anyone -- including your Realtor -- any information you do not want discussed. However, customers often sign documents allowing the banker to discuss your information with a wide range of companies or individual. But without this signed, the would be in voilation of federal laws.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Illegal will depend on the state and the disclosures you signed.
I think what they were trying to convey is that if you are comparing the rate they are offering to another lender if that lender is assuming a 740+ fico score thye comparison is not valid.
I think what they were trying to convey is that if you are comparing the rate they are offering to another lender if that lender is assuming a 740+ fico score thye comparison is not valid.
- Brent Mendelson, "EastCoastMortgages"
- Contributions:61
I don't know if it is illegal for sure depending on state laws but my guess would be yes. I know it sure is unethical and a loan officer should never give your score to anyone. I have had realtors ask and my answer was " it's good enough to get the loan they want/need.
- grepPZ
- Contributions:3
When the interest rate dropped last Friday, they refused to adjust it and used delaying tactic by not replying to my emails or calls. Then they said since the appraisal was already ordered, they cannot refund the application fee which is $460. Now they are even upsetting me by sharing my credit score. Is there any way to get $460 or a part of it back?
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
check their privacy policy also.
- The Kim Tokar Team, "JGruenke"
- Contributions:26
It all depends what state you are in. For example, in PA, in the mortgage clause it outlines that the realtor is to be advised and updated on all phases of the mortage process. In NJ that is not so. You really need to read the mortgage clause in the mortgage section.
- wayne lancaster, "funds2"
- Contributions:1177
Unless you give the lender permission to share your credit score or anything else about your credit report, the information on your report is to be kept confidential. Typically during a loan application process the applicant signs a form that authorizes lender to share your information including credit score with investor providing loan funds, but not other parties not part of the loan approval process.
Your lender owes you an apology and assurance it will not happen again. You may have other legal recourse depending on damage done.
Your lender owes you an apology and assurance it will not happen again. You may have other legal recourse depending on damage done.
- Lewis Poretz, "High Quality Advice"
- Contributions:219
you are exactly right - they are putting pressure on you....
I would politely tell them to back off or you will take you business elsewhere... they probably feel as if they have you locked in especially with the earnest money deposit and also depending on the stage of the loan you are in.....
remember this - you are driving the bus.... refuse to be bullied.....
I would politely tell them to back off or you will take you business elsewhere... they probably feel as if they have you locked in especially with the earnest money deposit and also depending on the stage of the loan you are in.....
remember this - you are driving the bus.... refuse to be bullied.....
Is my lender allowed to share my credit score with my realtor?
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