That Insurance Solicitation You Received After Closing on Your Loan? It Didn’t Come From Your Lender.

I received a call this morning from a borrower who had recently closed a loan with me, and was asking why First Heritage Mortgage was sending him solicitations for life insurance.  He felt it was a breach of confidentiality as he assumed we had provided his loan information to an outside vendor.

I explained that we would never provide his personal information to any third party that was not directly involved with the original transaction, and that lenders are held to very high standards regarding privacy laws - which they take very seriously.

The reality is that after a borrower closes on a mortgage, that information becomes public record when the Deed of Trust is recorded at the courthouse.  Thus, the basic information - name of borrower(s), property address, loan amount, originating lender, etc. is available to anyone who takes the time to look for it.  More personal information such as social security numbers is not provided.

Unfortunately, many of these companies use very clever strategies to make it appear as though the letter is from your lender.  If you look closely enough, there should even be a disclaimer stating the truth - that no lender has endorsed the solicitation, and that your information was derived from public sources.

Best to ignore those letters.  If you’re really interested in obtaining life insurance for your mortgage, I recommend clients talk to their own insurance agents or financial advisers about such programs.  Lenders sell money; we’re not in the insurance business.

 

 

 

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