September 15, 2025 • 19 mins
The Federal Reserve's meeting this week is expected to cut interest rates - Check in next week for the latest announcement!
The recently passed Homebuyer Protection Act eliminates predatory trigger leads that previously bombarded consumers with hundreds of calls after a mortgage credit check. Listen now for the details!
Also, more critical info to know as an agent and a consumer!
• Options for credit protection include Pre-screen Opt-Out, credit freezes, and careful timing of hard vs soft pulls
• Mortgage shopping allows multiple credit pulls within 45 days with only one impact to your score
• Avoid opening new credit, using Buy Now Pay Later services, or changing jobs during the mortgage process
• Employment verification now happens the day before or day of closing
• LQI (Limited Query Info) checks for new credit inquiries up to three days before closing
Find Nikki on TikTok and Instagram @mortgagesfromMNtoAZ or on Facebook under Nikki Erickson or The Kevnik Mortgage.
Now's The Time - no matter where you are, where you have been, or your current results - By becoming more aware and following a process, you can have whatever it is you truly desire!
Schedule a free discovery call with me.
I would love to learn more about your goals, dreams, and desires!!
https://calendly.com/angiegerber/zoom-call-15-minutes
Check out my YouTube Channel - So many ways to stay connected and plugged in!
AGCoaching@agcoaching684
With Gratitude -
Angie Gerber
angiegerber@gmail.com
⬜ JOIN MY TIKTOK : https://www.tiktok.com/@agcoaching4life
🟧 FOLLOW AND LIKE MY FACEBOOK ACCT : https://www.facebook.com/angie.gerber.5/
🟫 FOLLOW ME ON MY INSTAGRAM : https://www.instagram.com/angie.gerber.5/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Monday, september 15th, and here is your market
update.
Speaker 2 (00:07):
Well, good morning everyone.
Happy Monday.
So we are.
It's a big week for us.
This week the Fed is meetingand they have their two day
meeting.
We'll get the press conferenceon Wednesday.
The result of that meeting theyare expected to drop their
interest rate by a quarterpercent.
There is a small chance thatthey'll cut it by 50 basis
points or half a percent verysmall chance, but we'll kind of
(00:29):
see what happens.
There's also another member ofthe Fed that is stepping in that
is expected to be confirmedtoday.
If they get confirmed today.
That will be another votingmember on the Fed.
His name is Stephen Mirren, andso that confirmation is
expected to happen today andthen he'll be voting on Tuesday
and Wednesday for or against theFed cut.
(00:51):
So in interest rates.
The other thing that's happeningduring that meeting is that
they are doing their dotplanning, and what that means is
they are putting up basicallyon a graph where they think
interest rates should be by theend of the year.
So it's purely their opinion.
They kind of just go into thisgraph and look at interest rates
and go boop, that's what Ithink, boop, that's what I think
(01:12):
that they should be.
So based on their justviewpoint.
It's not based on a groupdiscussion, it's based on their
viewpoint and where they think.
So it'll be interesting to seethe tone of where the members
are thinking.
Things need to be interestingto see the tone of where the
members are thinking things needto be.
Also, with Powell leavingoffice next year, or leaving his
I shouldn't say leaving office,leaving his position next year,
it'll be very interesting andtelltale what his goals are
(01:34):
through the end of his term.
So we just kind of want to well, it'll be a good week to kind
of see what that is From amarket standpoint.
That interest rate drop hasalready been baked into the
market.
So, basically, what happenedaround beginning of September,
you can kind of see where thenews from that Jackson Hole
meeting that I had talked about.
This is where we saw basicallythe 30-point improvement in
(01:55):
interest rates and they've beenkind of hovering around that
ever since.
So we are in the upper.
I've been locking some loans inthe upper fives into the low
sixes, so that five number iscoming.
I've also been reaching out topast clients and this is
something that you guys mightwant to do as well reaching out
to past clients and saying, look, we are seeing an improvement
in interest rates.
This is what we've been waitingfor Check with your lender to
(02:16):
see if now is the right time.
I've been telling some peopleit is because they have other
circumstances, but a lot ofpeople I'm like you know what.
I kind of just think we shouldwait a little bit longer and see
how things go, because what wedon't want to do is refinance
somebody now and then have to doit again in three months
because interest rates havedropped dramatically or whatever
that case is.
I'm hoping that the Fed membersare going to start kind of
putting pressure down to lowerthose interest rates even more
(02:38):
towards the end of the year andthen that in turn of course
helps that 10-year treasury bondrespond with lower numbers,
which in turn makes mortgageinterest rates lower.
So we're very hopeful, butwe'll see what happens on
Wednesday.
Other big piece I think I hadtouched on this before is that
trigger lead legislation.
So trigger leads happen whenanyone comes in for a mortgage
(03:00):
inquiry If we do a hard pull ontheir credit, the credit bureaus
sell that information rightaway to companies like Loan
Depot and Quicken Mortgage.
Those are the two biggestpurchasers of trigger leads and
they call, call, call, call,call, call, call, call, call,
call, call the client over andover again on a rotodialer and
clients can get up to 500, 600phone calls just based on having
(03:21):
their credit pulled from amortgage inquiry.
So there's legislation that'sthe Homebuyer Protection Act 5
is what it's called and that haschanged the trigger leads, or
the ability for mortgagecompanies to have trigger leads,
so it cuts it completely offand puts the control back on the
consumer.
It'll be interesting to seewhat happens with companies like
Loan Depot and Quicken Loansand things of that nature that
(03:42):
depend very heavily on thosetrigger leads for a major part
of their business.
It'll be interesting to seewith companies like Loan Depot
and Quicken Loans and things ofthat nature that depend very
heavily on those trigger leadsfor a major part of their
business.
It'll be interesting to seewhat happens with those and to
see how their volume changes andtheir way of doing business
changes.
But it's an extremely importantpart of my just everyday life to
have that be a part of it,because there are things that we
(04:05):
could do to try to preventtrigger leads before this
legislation, but most, a lot oftimes they were unsuccessful and
so having to have aconversation.
Being like oh yeah, I'm going todo a pull on your credit and
watch out, you know this isgoing to go crazy, is not a
great conversation to have.
And so this really does protectthe consumer and it's a long
time coming and I'm so happyLike I couldn't be happier that
(04:27):
this legislation is in placebecause it's you know it's can
you imagine like every time youtalk to a client, a first-time
home buyer, and you visit withthem and you have a really good
value conversation, and then allof a sudden you must, 45 other
realtors are just calling thatfirst-time home buyer
incessantly?
I mean, that's really what itcame down to.
So it really does protect theconsumer and it was actually a
(04:50):
lot of that legislation waslobbied for by the National
Association of Realtors.
So it's in everybody's bestinterest, and especially in
sellers' and buyers' bestinterest, to have that
legislation in place.
So it didn't necessarily happenon soft pulls, but anytime we
did a hard pull, oh my gosh,these clients would get calls
and calls and calls.
So it's a good thing.
Speaker 1 (05:10):
Yeah, absolutely Sounds like it.
So is there anything that theycan do before this trigger?
Speaker 2 (05:15):
leads is passed.
Yep, I will put the website inour chat.
It's called Prescreen Opt-Outscreen opt out and basically you
can go in there and you can doan electronic opt out for five
years for any lead based trigger.
You know any lead basedelectronic lead based system
(05:37):
that might pick up yourinformation if you're on a
website or whatever that is, andit'll opt you out of getting
phone calls and things like that.
Now, is it 100% effective?
No, but it does catch most ofthem.
So it won't necessarily catchevery single solitary lead that
comes from you visiting a Zillowwebsite, for example, but it
(06:00):
will capture most of the leadsfrom a trigger lead standpoint
and I always just encouragepeople to just sign up for it
anyway if they don't want tohave those leads, don't want to
have that trigger stuff happenand be called out of the blue
for something random.
It does drastically reduce theamount and, unfortunately, the
breakdown.
A lot of times what I see ifpeople do get called not from a
(06:22):
mortgage standpoint, but just ingeneral, if that system doesn't
work properly is when they haveoverseas call centers that are
calling in for you know whateverthey're trying to sell you or
whatever that is.
For some reason there's a breakbetween that pre-screen opt-out
and those overseas call centers, and so I don't know if they
just don't have it worked intotheir system or it just the same
rules don't apply because it'soverseas or what it is.
(06:43):
But that's when I see itdoesn't work.
But yeah, you can do that andthen you can also.
There are also is just gettingyour credit soft pulled instead
of doing the hard pull and thenalso putting a, putting a freeze
on your credit when it's notgoing to be pulled.
Cause that kind of freezes,your information sharing too.
Speaker 1 (07:03):
Okay, so I just wrote down soft hard, soft pull, hard
pull and freeze on your credit.
So can you just briefly explaineach of those?
Speaker 2 (07:14):
So a soft pull on your credit is basically just a
think of it, as like, we get aglimpse of what your credit
profile looks like.
So what it means is it's not ahard pull, it doesn't affect
your credit score and it givesus a general outline of what
your credit score will be andwhat your credit profile looks
like.
So what it means is it's not ahard pull, it doesn't affect
your credit score and it givesus a general outline of what
your credit score will be andwhat your liabilities are.
We use those for pre-approvals,and we use those because we get
two scores, not three, whichmakes it not a full pull on your
(07:38):
credit.
So because we use those twoscores, we just use the lower of
the two for pre-approval andthen eventually, let's say, you
get an accepted purchaseagreement.
That's when we do the hard pull.
A hard pull has all threecredit bureaus and does affect
your credit score.
From a mortgage standpoint,your credit score is affected
two to three points and then itusually has a bounce back of 30
days and that's you know.
Speaker 1 (07:58):
So there's a question too on that.
So on the hard, pull two tothree point.
So is it kind of like withinthe industry?
So let's say the buyer'sshopping and they have you pull
it, and then loan depot orsomeone calls and calls and
calls and calls and convincesthem and pulls it.
Does that pull two to threepoints each time?
Speaker 2 (08:20):
That's a great question.
So, from a mortgage standpoint,you have up to 45 days to get
your credit pulled for shoppingpurposes any amount of times,
with it only affecting yourscore one time.
So that's very important tonote.
Conversely, if you go to a cardealership you want to buy a car
, you sit down with theirfinance person.
They say, hey, we need to pullyour credit.
They're actually pulling yourcredit like 20 times, up to 20
(08:47):
times to send your creditinformation to different lenders
to try to get a car loan foryou.
That can absolutely damage yourscore, because every single
lender that pulls your credit inthat situation damages your
score.
So I've seen credit point dropsof 40 to 50 points just by
going and shopping for a car.
So it's important to note.
I always recommend, when peoplego shopping for a car and this
has nothing to do with mortgagebut go to the bank, go to your
local bank first and getapproved for a car loan and then
(09:10):
go buy your car, instead of theother way around.
That's what I recommend.
Yes, definitely that, yeah, soyou're already ready to go,
especially if you're going to bepurchasing Exactly, especially
if you're going to be purchasinga house, yes, in the next year,
I would say, you know,definitely do that.
So then the frozen credit.
(09:30):
So what freezing your creditdoes is it prevents anyone from
pulling credit on you or havingaccess to your data or anything
of that nature, unless you giveexpress written permission.
So what that means is if you sayto me, hey, I want to get
pre-proved, and I say great,awesome, and I attempt to pull
your credit, it'll come backwith the word frozen and
(09:51):
basically you need then to gointo Experian, transunion,
equifax and say release mycredit from this freeze for 24
hours.
There's a 24-hour option,there's a three-day option and
then there's an unlimited option.
So what we tend to ask peopleto do who have frozen credit is
release it for 24 hours, thenlock it back up, and then the
(10:13):
only thing that we'll need fromyou at the very end is to do
what we call an LQI, which iswhere we do another tap into
your credit to see if any newdebt has been established during
the time of from us startingthe loan application, like from
us doing the first full pull tothe end of closing, so that we
(10:33):
don't, so that we know if we've,you know, had any new inquiries
resulting in any new debt.
Speaker 1 (10:39):
Yeah.
So on the freeze, why wouldsomeone freeze their credit?
What situations do you see?
I guess if you could talk more.
Speaker 2 (10:47):
People who have been victims of identity theft will
often freeze their credit Peoplewho lost a credit card, people
who maybe just want an extralayer of protection against
identity theft, people who, youknow, like I said, have had some
sort of credit event or somesort of credit card event, or
whatever that is, that hasaffected their score, or that
(11:09):
they are afraid that somebodyfound their credit card on the
street because they lost it.
You know, even though they'veblocked the credit card and
canceled it, they still want tomake sure that they put that
extra layer of protection so inthere.
And then they want to be incontrol of who sees their credit
and to make sure that nobodythat doesn't have permission
can't pull their credit.
Speaker 1 (11:27):
Yeah, how would a person go about freezing their
credit?
Speaker 2 (11:30):
Great question.
So you can go to transunioncom,experiencecom and aquafaxcom
and in the menu bars, you, ineach of the menu bars, they will
have a credit freeze option andyou, just, you just request it
to be frozen, and then you agreeto the terms and conditions and
it's frozen.
Perfect, exactly, it's easy,just as easy to unfreeze it.
Speaker 1 (11:52):
Perfect, yeah, no, that I love that.
Other layers so that nothingcan be happening behind the
scenes without you knowing.
So why not?
Thank you?
Yes, and I want to.
I've jotted something down aswe were talking because I was
just like oh, purchasing a carwhile you're thinking about
getting a house, don't do that.
(12:12):
I got to go back and saysomething because that's our
joke.
But seriously, how many horrorstories about someone that goes
out and opens like a furniturecredit card two days before
closing because they want to gettheir furniture or car or
something, and then and alsodon't sign up for any buy now,
pay laters while you're in theprocess either do not sign up
(12:35):
for any buy now, pay laters,those are considered credit debt
and are going to start beingreported to credit.
Speaker 2 (12:42):
So just an FYI.
So if you go on to Wayfair orwherever it is and you can buy
now, pay later on this furniture, like you said, that is
considered a line of credit nowin the mortgage industry.
So just know that if you haveany buy now, pay later that show
up on bank statements becausethey're going to start showing
up on credit reports.
But if they start showing up onbank statements, we have to
answer for those and we have totake those into consideration.
(13:03):
So the $6 a month, the $10 amonth, the $20 a month, the $50
a month, those things add upvery quickly and can affect your
debt-to-income ratio.
So if you're going to use thebuy now, pay later system,
please let us know and wait.
Speaker 1 (13:21):
I just know that some lenders are not as good as you,
and I've heard horror storiesabout them not understanding or
knowing that they go and buy acar.
Speaker 2 (13:35):
Yeah, I've had a client within the past six
months Well, was it the past sixmonths or past year?
It doesn't really matter.
Anyway, they were first-timehomebuyers using down payment
assistance to purchase a homeand she had upwards of 17
different buy now, pay later'sthat we didn't find out about
until we were verifying thingslater on, with bank statements
(13:56):
on accounts that she was usingfor earnest money that we didn't
verify until she had theearnest money done, because we
didn't.
You know, we gathered up theinitial documents to verify.
She had enough for down payment, but that was a different
account.
So she had upwards of like 17buy now pay later that we had to
work into her debt to incomeratio, yeah, and we had to have
her pay some off.
We had to have her show us thatthey were at zero balance.
We had to have her show thatthere were less than 10 payments
(14:18):
on some of them so that we canexclude them from her debt to
income ratio.
It was a mess.
Speaker 1 (14:23):
It sounds like it.
Oh yes, buyer, beware on that.
You'll see a big oldspreadsheet on that one there.
Speaker 2 (14:38):
So a lot of things happen in behind the scenes
where it's like, man, you knowthat was my.
That was honestly my firstexperience with buy now, pay
laters, affecting mortgage, youknow qualifying, but man, that
was a.
That was a giant one to tolearn on.
Speaker 1 (14:49):
And one other thing you mentioned, just cause I
think it would be good forpeople listening that might not
know the industry, the LQI, yes,where you pull it from, if you
want to just explain that aswell, yeah, so an LQI is just a
limited query info.
Speaker 2 (15:04):
So basically what we do is we go tap into your credit
to see if you've had additionalcredit inquiries during the
loan process.
So from the date that we pullcredit until closing, two to
three days before closing, wecan just see have you had any
inquiries?
So, have you signed up for thatKohl's card?
Have you, you know, went boughta car?
Have you done any other creditactivity to get a discount at a
(15:26):
department store?
Whatever it is?
We only can see that there wasan inquiry.
So then what we do is we comeback to you and say, hey, there
was this inquiry.
A lot of times it can besomething like I was setting up
utilities at the new place andthey wanted a credit inquiry.
Or I was at Kohl's doing theshopping and I wanted to get the
(15:46):
discount.
That's really what it is mostof the time, because most people
know not to take out new credit.
But those small things kind ofmake big consequences.
And if you really think aboutit, even that LQI process that
we do it, we're allowed to do itup to three days before closing
.
We do it three days beforeclosing because if something
happens, we need three days toget it through our system again.
So just know that it can affectclosing date.
(16:08):
If you're going to go out andtry to get new credit, you know
it can affect closing date,because three days is not a lot
of time for us to get a creditcard statement for a card that
maybe you opened last week.
I mean there's not going to benothing available.
You know there's not a lot oftime for us to get the
documentation that we need orget it added to your debt to
income ratio or get it added toyour credit where we got to
(16:29):
figure something out, and threedays is not a lot of time, so
it's just better to not.
Speaker 1 (16:35):
Yes, wait till after closing and don't quit your job
either.
Speaker 2 (16:40):
By the way we verify that too.
That happens the day beforeclosing or the day of closing,
so we no longer have three dayson that.
So, just an FYI, that happensthe day before or the day of.
If it happens to somebody theday before, and we unfortunately
will have to delay closing ifwe can't get ahold of your
employer.
So that's been a real bigcrackdown in the mortgage
industry, as well as making surepeople are actually employed.
(17:03):
Yes, they used to give us up tolike a week to verify
employment before closing.
Now it's it's day of, basically.
Yeah.
Speaker 1 (17:11):
That's amazing.
Yes, and I had an agent that Iwas coaching that happened to
her client and it literally theythought, cause it was like a
day before or two before, they'dbe fine.
It was not fine.
Speaker 2 (17:22):
Not fine, it's never fine.
Speaker 1 (17:24):
No.
Speaker 2 (17:24):
Also, the other thing is yeah, I mean, if you're
getting a new job, please tellme as far in advance as possible
.
Speaker 1 (17:32):
Yeah.
Cause we'll need to know thatNikki's like your BFF possible.
Yeah, nikki's like your BFF.
Speaker 2 (17:38):
So I want all the tea , spill all the tea to me.
Okay, you know, and there is.
You know, some things are a bigdeal and some things are not.
Speaker 1 (17:47):
So it's better to just spill the tea.
Yes, no, I love it.
Awesome, Such great informationtoday, as usual.
Good education for even agentsthat are newer, some that
probably haven't heard some ofthese terms or thought about it
in a while, and anyone elselistening to our podcast or us
on YouTube.
Be sure to subscribe and followcomment.
(18:09):
Let us know what you would liketo hear, if anything, and we can
also see that next week or inthe weeks to come, because we
are here every Monday giving youan update and going over great
information like this.
So, as always, nikki, Iappreciate you and how you show
up every week.
Speaker 2 (18:25):
Absolutely, and I appreciate you guys and, yeah,
I'm happy to do it.
Speaker 1 (18:29):
All right.
Well, till next week and again,Nikki, where do they find you
if they want to follow youramazing content, what you're
doing online?
Speaker 2 (18:36):
Yep.
So you can find me on TikTok atat mortgages from MN to AZ.
You can find me on Instagramunder the same handle and on
Facebook under Nikki Ericksonand or the Kevnick Mortgage.
Speaker 1 (18:47):
Perfect, all right, till next week.
Go sell something and have agood one, all right, bye
everyone.
Monday, september 15th, and here is your market
update.
Speaker 2 (00:07):
Well, good morning everyone.
Happy Monday.
So we are.
It's a big week for us.
This week the Fed is meetingand they have their two day
meeting.
We'll get the press conferenceon Wednesday.
The result of that meeting theyare expected to drop their
interest rate by a quarterpercent.
There is a small chance thatthey'll cut it by 50 basis
points or half a percent verysmall chance, but we'll kind of
(00:29):
see what happens.
There's also another member ofthe Fed that is stepping in that
is expected to be confirmedtoday.
If they get confirmed today.
That will be another votingmember on the Fed.
His name is Stephen Mirren, andso that confirmation is
expected to happen today andthen he'll be voting on Tuesday
and Wednesday for or against theFed cut.
(00:51):
So in interest rates.
The other thing that's happeningduring that meeting is that
they are doing their dotplanning, and what that means is
they are putting up basicallyon a graph where they think
interest rates should be by theend of the year.
So it's purely their opinion.
They kind of just go into thisgraph and look at interest rates
and go boop, that's what Ithink, boop, that's what I think
(01:12):
that they should be.
So based on their justviewpoint.
It's not based on a groupdiscussion, it's based on their
viewpoint and where they think.
So it'll be interesting to seethe tone of where the members
are thinking.
Things need to be interestingto see the tone of where the
members are thinking things needto be.
Also, with Powell leavingoffice next year, or leaving his
I shouldn't say leaving office,leaving his position next year,
it'll be very interesting andtelltale what his goals are
(01:34):
through the end of his term.
So we just kind of want to well, it'll be a good week to kind
of see what that is From amarket standpoint.
That interest rate drop hasalready been baked into the
market.
So, basically, what happenedaround beginning of September,
you can kind of see where thenews from that Jackson Hole
meeting that I had talked about.
This is where we saw basicallythe 30-point improvement in
(01:55):
interest rates and they've beenkind of hovering around that
ever since.
So we are in the upper.
I've been locking some loans inthe upper fives into the low
sixes, so that five number iscoming.
I've also been reaching out topast clients and this is
something that you guys mightwant to do as well reaching out
to past clients and saying, look, we are seeing an improvement
in interest rates.
This is what we've been waitingfor Check with your lender to
(02:16):
see if now is the right time.
I've been telling some peopleit is because they have other
circumstances, but a lot ofpeople I'm like you know what.
I kind of just think we shouldwait a little bit longer and see
how things go, because what wedon't want to do is refinance
somebody now and then have to doit again in three months
because interest rates havedropped dramatically or whatever
that case is.
I'm hoping that the Fed membersare going to start kind of
putting pressure down to lowerthose interest rates even more
(02:38):
towards the end of the year andthen that in turn of course
helps that 10-year treasury bondrespond with lower numbers,
which in turn makes mortgageinterest rates lower.
So we're very hopeful, butwe'll see what happens on
Wednesday.
Other big piece I think I hadtouched on this before is that
trigger lead legislation.
So trigger leads happen whenanyone comes in for a mortgage
(03:00):
inquiry If we do a hard pull ontheir credit, the credit bureaus
sell that information rightaway to companies like Loan
Depot and Quicken Mortgage.
Those are the two biggestpurchasers of trigger leads and
they call, call, call, call,call, call, call, call, call,
call, call the client over andover again on a rotodialer and
clients can get up to 500, 600phone calls just based on having
(03:21):
their credit pulled from amortgage inquiry.
So there's legislation that'sthe Homebuyer Protection Act 5
is what it's called and that haschanged the trigger leads, or
the ability for mortgagecompanies to have trigger leads,
so it cuts it completely offand puts the control back on the
consumer.
It'll be interesting to seewhat happens with companies like
Loan Depot and Quicken Loansand things of that nature that
(03:42):
depend very heavily on thosetrigger leads for a major part
of their business.
It'll be interesting to seewith companies like Loan Depot
and Quicken Loans and things ofthat nature that depend very
heavily on those trigger leadsfor a major part of their
business.
It'll be interesting to seewhat happens with those and to
see how their volume changes andtheir way of doing business
changes.
But it's an extremely importantpart of my just everyday life to
have that be a part of it,because there are things that we
(04:05):
could do to try to preventtrigger leads before this
legislation, but most, a lot oftimes they were unsuccessful and
so having to have aconversation.
Being like oh yeah, I'm going todo a pull on your credit and
watch out, you know this isgoing to go crazy, is not a
great conversation to have.
And so this really does protectthe consumer and it's a long
time coming and I'm so happyLike I couldn't be happier that
(04:27):
this legislation is in placebecause it's you know it's can
you imagine like every time youtalk to a client, a first-time
home buyer, and you visit withthem and you have a really good
value conversation, and then allof a sudden you must, 45 other
realtors are just calling thatfirst-time home buyer
incessantly?
I mean, that's really what itcame down to.
So it really does protect theconsumer and it was actually a
(04:50):
lot of that legislation waslobbied for by the National
Association of Realtors.
So it's in everybody's bestinterest, and especially in
sellers' and buyers' bestinterest, to have that
legislation in place.
So it didn't necessarily happenon soft pulls, but anytime we
did a hard pull, oh my gosh,these clients would get calls
and calls and calls.
So it's a good thing.
Speaker 1 (05:10):
Yeah, absolutely Sounds like it.
So is there anything that theycan do before this trigger?
Speaker 2 (05:15):
leads is passed.
Yep, I will put the website inour chat.
It's called Prescreen Opt-Outscreen opt out and basically you
can go in there and you can doan electronic opt out for five
years for any lead based trigger.
You know any lead basedelectronic lead based system
(05:37):
that might pick up yourinformation if you're on a
website or whatever that is, andit'll opt you out of getting
phone calls and things like that.
Now, is it 100% effective?
No, but it does catch most ofthem.
So it won't necessarily catchevery single solitary lead that
comes from you visiting a Zillowwebsite, for example, but it
(06:00):
will capture most of the leadsfrom a trigger lead standpoint
and I always just encouragepeople to just sign up for it
anyway if they don't want tohave those leads, don't want to
have that trigger stuff happenand be called out of the blue
for something random.
It does drastically reduce theamount and, unfortunately, the
breakdown.
A lot of times what I see ifpeople do get called not from a
(06:22):
mortgage standpoint, but just ingeneral, if that system doesn't
work properly is when they haveoverseas call centers that are
calling in for you know whateverthey're trying to sell you or
whatever that is.
For some reason there's a breakbetween that pre-screen opt-out
and those overseas call centers, and so I don't know if they
just don't have it worked intotheir system or it just the same
rules don't apply because it'soverseas or what it is.
(06:43):
But that's when I see itdoesn't work.
But yeah, you can do that andthen you can also.
There are also is just gettingyour credit soft pulled instead
of doing the hard pull and thenalso putting a, putting a freeze
on your credit when it's notgoing to be pulled.
Cause that kind of freezes,your information sharing too.
Speaker 1 (07:03):
Okay, so I just wrote down soft hard, soft pull, hard
pull and freeze on your credit.
So can you just briefly explaineach of those?
Speaker 2 (07:14):
So a soft pull on your credit is basically just a
think of it, as like, we get aglimpse of what your credit
profile looks like.
So what it means is it's not ahard pull, it doesn't affect
your credit score and it givesus a general outline of what
your credit score will be andwhat your credit profile looks
like.
So what it means is it's not ahard pull, it doesn't affect
your credit score and it givesus a general outline of what
your credit score will be andwhat your liabilities are.
We use those for pre-approvals,and we use those because we get
two scores, not three, whichmakes it not a full pull on your
(07:38):
credit.
So because we use those twoscores, we just use the lower of
the two for pre-approval andthen eventually, let's say, you
get an accepted purchaseagreement.
That's when we do the hard pull.
A hard pull has all threecredit bureaus and does affect
your credit score.
From a mortgage standpoint,your credit score is affected
two to three points and then itusually has a bounce back of 30
days and that's you know.
Speaker 1 (07:58):
So there's a question too on that.
So on the hard, pull two tothree point.
So is it kind of like withinthe industry?
So let's say the buyer'sshopping and they have you pull
it, and then loan depot orsomeone calls and calls and
calls and calls and convincesthem and pulls it.
Does that pull two to threepoints each time?
Speaker 2 (08:20):
That's a great question.
So, from a mortgage standpoint,you have up to 45 days to get
your credit pulled for shoppingpurposes any amount of times,
with it only affecting yourscore one time.
So that's very important tonote.
Conversely, if you go to a cardealership you want to buy a car
, you sit down with theirfinance person.
They say, hey, we need to pullyour credit.
They're actually pulling yourcredit like 20 times, up to 20
(08:47):
times to send your creditinformation to different lenders
to try to get a car loan foryou.
That can absolutely damage yourscore, because every single
lender that pulls your credit inthat situation damages your
score.
So I've seen credit point dropsof 40 to 50 points just by
going and shopping for a car.
So it's important to note.
I always recommend, when peoplego shopping for a car and this
has nothing to do with mortgagebut go to the bank, go to your
local bank first and getapproved for a car loan and then
(09:10):
go buy your car, instead of theother way around.
That's what I recommend.
Yes, definitely that, yeah, soyou're already ready to go,
especially if you're going to bepurchasing Exactly, especially
if you're going to be purchasinga house, yes, in the next year,
I would say, you know,definitely do that.
So then the frozen credit.
(09:30):
So what freezing your creditdoes is it prevents anyone from
pulling credit on you or havingaccess to your data or anything
of that nature, unless you giveexpress written permission.
So what that means is if you sayto me, hey, I want to get
pre-proved, and I say great,awesome, and I attempt to pull
your credit, it'll come backwith the word frozen and
(09:51):
basically you need then to gointo Experian, transunion,
equifax and say release mycredit from this freeze for 24
hours.
There's a 24-hour option,there's a three-day option and
then there's an unlimited option.
So what we tend to ask peopleto do who have frozen credit is
release it for 24 hours, thenlock it back up, and then the
(10:13):
only thing that we'll need fromyou at the very end is to do
what we call an LQI, which iswhere we do another tap into
your credit to see if any newdebt has been established during
the time of from us startingthe loan application, like from
us doing the first full pull tothe end of closing, so that we
(10:33):
don't, so that we know if we've,you know, had any new inquiries
resulting in any new debt.
Speaker 1 (10:39):
Yeah.
So on the freeze, why wouldsomeone freeze their credit?
What situations do you see?
I guess if you could talk more.
Speaker 2 (10:47):
People who have been victims of identity theft will
often freeze their credit Peoplewho lost a credit card, people
who maybe just want an extralayer of protection against
identity theft, people who, youknow, like I said, have had some
sort of credit event or somesort of credit card event, or
whatever that is, that hasaffected their score, or that
(11:09):
they are afraid that somebodyfound their credit card on the
street because they lost it.
You know, even though they'veblocked the credit card and
canceled it, they still want tomake sure that they put that
extra layer of protection so inthere.
And then they want to be incontrol of who sees their credit
and to make sure that nobodythat doesn't have permission
can't pull their credit.
Speaker 1 (11:27):
Yeah, how would a person go about freezing their
credit?
Speaker 2 (11:30):
Great question.
So you can go to transunioncom,experiencecom and aquafaxcom
and in the menu bars, you, ineach of the menu bars, they will
have a credit freeze option andyou, just, you just request it
to be frozen, and then you agreeto the terms and conditions and
it's frozen.
Perfect, exactly, it's easy,just as easy to unfreeze it.
Speaker 1 (11:52):
Perfect, yeah, no, that I love that.
Other layers so that nothingcan be happening behind the
scenes without you knowing.
So why not?
Thank you?
Yes, and I want to.
I've jotted something down aswe were talking because I was
just like oh, purchasing a carwhile you're thinking about
getting a house, don't do that.
(12:12):
I got to go back and saysomething because that's our
joke.
But seriously, how many horrorstories about someone that goes
out and opens like a furniturecredit card two days before
closing because they want to gettheir furniture or car or
something, and then and alsodon't sign up for any buy now,
pay laters while you're in theprocess either do not sign up
(12:35):
for any buy now, pay laters,those are considered credit debt
and are going to start beingreported to credit.
Speaker 2 (12:42):
So just an FYI.
So if you go on to Wayfair orwherever it is and you can buy
now, pay later on this furniture, like you said, that is
considered a line of credit nowin the mortgage industry.
So just know that if you haveany buy now, pay later that show
up on bank statements becausethey're going to start showing
up on credit reports.
But if they start showing up onbank statements, we have to
answer for those and we have totake those into consideration.
(13:03):
So the $6 a month, the $10 amonth, the $20 a month, the $50
a month, those things add upvery quickly and can affect your
debt-to-income ratio.
So if you're going to use thebuy now, pay later system,
please let us know and wait.
Speaker 1 (13:21):
I just know that some lenders are not as good as you,
and I've heard horror storiesabout them not understanding or
knowing that they go and buy acar.
Speaker 2 (13:35):
Yeah, I've had a client within the past six
months Well, was it the past sixmonths or past year?
It doesn't really matter.
Anyway, they were first-timehomebuyers using down payment
assistance to purchase a homeand she had upwards of 17
different buy now, pay later'sthat we didn't find out about
until we were verifying thingslater on, with bank statements
(13:56):
on accounts that she was usingfor earnest money that we didn't
verify until she had theearnest money done, because we
didn't.
You know, we gathered up theinitial documents to verify.
She had enough for down payment, but that was a different
account.
So she had upwards of like 17buy now pay later that we had to
work into her debt to incomeratio, yeah, and we had to have
her pay some off.
We had to have her show us thatthey were at zero balance.
We had to have her show thatthere were less than 10 payments
(14:18):
on some of them so that we canexclude them from her debt to
income ratio.
It was a mess.
Speaker 1 (14:23):
It sounds like it.
Oh yes, buyer, beware on that.
You'll see a big oldspreadsheet on that one there.
Speaker 2 (14:38):
So a lot of things happen in behind the scenes
where it's like, man, you knowthat was my.
That was honestly my firstexperience with buy now, pay
laters, affecting mortgage, youknow qualifying, but man, that
was a.
That was a giant one to tolearn on.
Speaker 1 (14:49):
And one other thing you mentioned, just cause I
think it would be good forpeople listening that might not
know the industry, the LQI, yes,where you pull it from, if you
want to just explain that aswell, yeah, so an LQI is just a
limited query info.
Speaker 2 (15:04):
So basically what we do is we go tap into your credit
to see if you've had additionalcredit inquiries during the
loan process.
So from the date that we pullcredit until closing, two to
three days before closing, wecan just see have you had any
inquiries?
So, have you signed up for thatKohl's card?
Have you, you know, went boughta car?
Have you done any other creditactivity to get a discount at a
(15:26):
department store?
Whatever it is?
We only can see that there wasan inquiry.
So then what we do is we comeback to you and say, hey, there
was this inquiry.
A lot of times it can besomething like I was setting up
utilities at the new place andthey wanted a credit inquiry.
Or I was at Kohl's doing theshopping and I wanted to get the
(15:46):
discount.
That's really what it is mostof the time, because most people
know not to take out new credit.
But those small things kind ofmake big consequences.
And if you really think aboutit, even that LQI process that
we do it, we're allowed to do itup to three days before closing
.
We do it three days beforeclosing because if something
happens, we need three days toget it through our system again.
So just know that it can affectclosing date.
(16:08):
If you're going to go out andtry to get new credit, you know
it can affect closing date,because three days is not a lot
of time for us to get a creditcard statement for a card that
maybe you opened last week.
I mean there's not going to benothing available.
You know there's not a lot oftime for us to get the
documentation that we need orget it added to your debt to
income ratio or get it added toyour credit where we got to
(16:29):
figure something out, and threedays is not a lot of time, so
it's just better to not.
Speaker 1 (16:35):
Yes, wait till after closing and don't quit your job
either.
Speaker 2 (16:40):
By the way we verify that too.
That happens the day beforeclosing or the day of closing,
so we no longer have three dayson that.
So, just an FYI, that happensthe day before or the day of.
If it happens to somebody theday before, and we unfortunately
will have to delay closing ifwe can't get ahold of your
employer.
So that's been a real bigcrackdown in the mortgage
industry, as well as making surepeople are actually employed.
(17:03):
Yes, they used to give us up tolike a week to verify
employment before closing.
Now it's it's day of, basically.
Yeah.
Speaker 1 (17:11):
That's amazing.
Yes, and I had an agent that Iwas coaching that happened to
her client and it literally theythought, cause it was like a
day before or two before, they'dbe fine.
It was not fine.
Speaker 2 (17:22):
Not fine, it's never fine.
Speaker 1 (17:24):
No.
Speaker 2 (17:24):
Also, the other thing is yeah, I mean, if you're
getting a new job, please tellme as far in advance as possible
.
Speaker 1 (17:32):
Yeah.
Cause we'll need to know thatNikki's like your BFF possible.
Yeah, nikki's like your BFF.
Speaker 2 (17:38):
So I want all the tea , spill all the tea to me.
Okay, you know, and there is.
You know, some things are a bigdeal and some things are not.
Speaker 1 (17:47):
So it's better to just spill the tea.
Yes, no, I love it.
Awesome, Such great informationtoday, as usual.
Good education for even agentsthat are newer, some that
probably haven't heard some ofthese terms or thought about it
in a while, and anyone elselistening to our podcast or us
on YouTube.
Be sure to subscribe and followcomment.
(18:09):
Let us know what you would liketo hear, if anything, and we can
also see that next week or inthe weeks to come, because we
are here every Monday giving youan update and going over great
information like this.
So, as always, nikki, Iappreciate you and how you show
up every week.
Speaker 2 (18:25):
Absolutely, and I appreciate you guys and, yeah,
I'm happy to do it.
Speaker 1 (18:29):
All right.
Well, till next week and again,Nikki, where do they find you
if they want to follow youramazing content, what you're
doing online?
Speaker 2 (18:36):
Yep.
So you can find me on TikTok atat mortgages from MN to AZ.
You can find me on Instagramunder the same handle and on
Facebook under Nikki Ericksonand or the Kevnick Mortgage.
Speaker 1 (18:47):
Perfect, all right, till next week.
Go sell something and have agood one, all right, bye
everyone.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com