Source: PR Leap
Since the housing market slowed down, the mortgage industry has seen an increase in a new type of fraud. Some are turning a blind eye to the issue, instead focusing exclusively on profit. But other companies, like America’s Lending Partners (ALP), are working hard to ensure their applicants did apply for a loan.

ALP works with both lenders and applicants to ensure customers information isn’t being carelessly distributed to untrustworthy organizations. According to Joseph McGinnis, a Marketing Manager at ALP, “Every business wants to make money. But respect for the customer must be the top priority. America’s Lending Partners uses rigorous practices to verify our customer’s interest and protect them from unwanted solicitations, and we urge others in the industry to join us in fighting for consumer privacy.” ALPs’ applicants are welcome to call 1-866-426-5221 or visit www.lendingpartners.com if they have questions.

Some of the problem lies with a proportionally small number of dishonest affiliate websites. Many mortgage companies pay other websites a small fee for each lead they generate. They then sell this information to lead aggregators, rather than distributing them to mortgage lenders directly. While many of these websites are reputable and conscientious, a small but active minority have no intention of providing good service to their customers. In some cases loan applicant details are sold and then resold among some of these affiliate websites in an effort to make more money. In other cases information pertaining to people who never even applied for a mortgage is sold. Such information can be obtained from a number of sources, including simply opening the telephone book, randomly picking a name, and then augmenting it with false financial information.

Often this type of fraud can result in twenty or more loan companies calling a single consumer’s house in a matter of a few days! Some argue that more calls equate to better loan deals. But this argument ignores the inconvenience to the consumer, the uncertainty as to the legitimacy of the offers, and the fundamental lack of respect for consumer privacy. Here are some helpful pointers that will prevent you from becoming entangled in this unsavory and inconvenient world.

1. Check with the state banking departments to ensure you are working with a licensed entity.
2. Apply to only one reputable mortgage company, preferably one who can provide you with multiple loan offers.
3. Work with that company throughout the entire loan process.
4. Make sure the company is in good standing with the Better Business Bureau.
5. Read their Privacy Policy and their Terms of Service.
6. Make sure you have heard of the company you are applying to, or that they have an established track record and media presence.
7. Use your best judgment. If the website looks unprofessional, doesn’t provide specific state licensing numbers, or their customer service department is difficult to reach, you are probably not working with a reputable company.

Privacy is gaining increasing importance in today’s society. But more attention must be given to protect those taking the first steps toward a new mortgage. Failure could jeopardize the legitimacy of the entire mortgage process.