Exec Warns Industry to Tighten Consumer Data Protection

ATLANTIC CITY, NJ—Executives at Credit Plus Inc., Salisbury, Md., are taking the initiative to remind the mortgage industry of the need to protect consumer credit data it gets during the application process.

In an interview during the Regional Conference of Mortgage Bankers Associations here, Greg Holmes, national director of sales and marketing, said there have been some “glaring instances” where consumer data has been stolen because of a lack of security by the originator.

It is a topic taken very seriously by the federal government, as well as mortgage regulators. He said it has become tougher for loan officers to pull consumer credit reports because of the additional levels of security being put in place for privacy reasons.

So Credit Plus is getting the word out that things are getting tougher in terms of compliance, he said.

On its side of the table, the company is pointing out that the Federal Trade Commission issued a statement emphasizing the importance of credit reporting agencies taking all necessary steps to protect consumers from the risk of data security breaches and identity theft.

The Fair Credit Reporting Act was cited by Credit Plus as requiring it to take steps to ensure its mortgage originator and lender customers are doing their part to protect consumer data.

Credit Plus developed its security measures in conjunction with the three major credit repositories: Equifax, Experian and TransUnion. It also explains its security requirements in its own service agreement with mortgage lenders, and offers training on security best practices to its customers.

Holmes said a competitor was called into the FTC and fined because it didn’t have securities requirements in place.

It is no longer a case of just knowing who is pulling credit reports. Holmes said his firm needed to know the IP address of the computer making the request. That address has to be registered in order for the person making the pull to get the information.

The aim is to make sure the IP address is not a fake, as foreign hackers have been trying to get their hands on this information, he said.

“Everyone benefits from the stringent requirements we have put in place: Credit Plus, the mortgage professionals we serve and their customers. We will remain vigilant to protect the integrity of consumers’ data every step of the way,” Holmes said.

Repeating his point that getting information is not as easy as it used to be, he continued there are bad people out there doing bad things and the industry must take this seriously.

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