Mortgage Minute 6-01 Credit Monitoring

We have already informed you of Fannie Mae’s “LQI” – Loan Quality Initiative which begins today where Conventional Mortgages will be double-checked just before closing on several areas. One worry comes from what could happen if credit scores change just before closing. Undoubtedly, there will be services spring up that offer you credit monitoring and there are many who actually do a good job, but buyer beware.

The pitch: The FTC is cracking down on sites that mislead people into thinking they're getting a free credit you lost your wallet. And even then, it doesn't stop someone from opening a new account in your name.

The only way to do that is by freezing your credit reports at all three bureaus through a service like TrustedID (typical cost: $20 to $40).



That will keep new lenders from looking at your reports and prevent accounts from being opened by anyone -- including you. The downside: To take out a loan, you'll have to pay $15 to unfreeze your reports.

The exception: If you have a financial goal (like buying a home) in the months ahead and want to know what actions boost your score as well as when it hits a certain threshold, Equifax's Score Watch may be worth the price.