Posted on: 02nd Aug, 2006 01:40 pm
I have a lead generation company that will give me 1003 applications. They say they will even pull out the credit and SSN. Are lead generation companies allowed to pull credit and since I have to pull credit in my company name will it not be a double pull? Also is it legal for me to pay them on every loan I close. They have proposed to send me 1003 applications and I pay them only for amy application that I get funded. Is this legal and can I use this more in terms like a referral fee.
As far as my knowledge, RESPA does not consider referral fees as legal and a payment contingent upon a loan being closed would be an illegal referral fee under RESPA.
Hi,
Lenders can pull consumer credit report from the Bureaus a number of times. But this is not a favorable practice as it affects the credit scores of consumers. So, it is always better to prevent such practice.
Thanks,
Caron.
Lenders can pull consumer credit report from the Bureaus a number of times. But this is not a favorable practice as it affects the credit scores of consumers. So, it is always better to prevent such practice.
Thanks,
Caron.