Your shiny new mortgage has just funded. So, why are you receiving all of the letters in your mail box about buying title insurance? Did your bank sell your mortgage information?
To the average homebuyer, it might appear that this is the case. How do these companies get access to your new loan information?
Let’s take a look back in history. On September 9, 1850, California was admitted to the Union by the United States. One of the very first acts of the Legislature of the new state was to adopt a recording system by which evidence of title or interests in the title could be collected and maintained in a convenient and safe public place. The purpose of establishing a recording system was to inform anyone planning to purchase or otherwise deal with land about the ownership and condition of the title.
This system was design to protect innocent lenders and purchasers against secret sales, transfers, or conveyances and from undisclosed encumbrances or liens. This allows the title to the real property to be freely transferable.
When you buy a new home or refinance an existing loan on a home, you will be required to sign loan documents which will affect your home’s Deed of Trust. After you meet with a Notary Public and sign your loan documents, the Government Code of California has specific recording requirements. Lenders are required by law to record the documents or legal “instruments” affecting the title of your home with the county recorder’s office in the county where your home is located. Once recorded, this information becomes public record.
Very soon thereafter, you will receive a letter from the county recorder’s property officer acknowledging or verifying that your documents or legal “instruments” have been filed for record.
Public records are frequently “mined” by data companies with the intent of selling this information. A lot of times, companies that have services that might be of interest to a consumer with a new mortgage will actively mail out solicitations. Perhaps you have seen a variety of solicitations, such as for title insurance. These companies will often make the letters appear as though it is coming from the consumer’s mortgage lender. But, don’t be fooled. These companies purchased a list of public records to gain access to the consumer’s new loan details.
Remember: Fremont Bank does not sell your information.