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United States. Federal Reserve Board

Mortgage Data: A Double-Edged Sword for Americans

Strategic Insights

— 1 min read

President Trump's accusation against Federal Reserve governor Lisa Cook and the subsequent investigation into mortgage data have raised concerns about the accessibility and privacy of such information. While a limited amount of mortgage data is part of the public record, it can still be used to pry into individuals' finances. This article delves into the types of mortgage data that are public and private, how to access and remove mortgage information, and the implications for homebuyers.

Key Takeaways:

  • A limited amount of mortgage data, including the borrower's name, lender, property address, and original loan amount, is part of the public record and can be accessed through the county clerk's office.
  • Commercial services like DataTree make it easy and inexpensive for laypeople to look into mortgage dealings, with some services offering recent financing documents for $8.
  • Private information, such as financial details shared with lenders, is supposed to remain private but can be accessed by the federal government for certain purposes.
  • Mortgage fraud is a relatively rare occurrence, with an estimated 0.86% of applications containing fraud during the second quarter of this year, according to Cotality.
  • Homebuyers can consider structuring their purchase through an L.L.C. or trust to keep mortgage records private, but this may come with additional costs and tax implications.
  • Politicians and public figures are more likely to have their mortgage information scrutinized, and it's recommended that they speak with a lawyer and lender to address any concerns.

Statistics:

  • 0.86% of mortgage applications contained fraud during the second quarter of this year, according to Cotality.
  • The Partnership between Fannie Mae and Palantir's "crime detection unit" aims to expand fraud detection across the US government.
  • With the increasing ease of access to mortgage data, the likelihood of someone trying to use it against individuals will likely climb before it drops.

Sources:

  • This article
  • Bills Pulte, Director of the Federal Housing Finance Agency
  • Jo Ellen Bergstrom, Vice President at ATTOM
  • Rob Shavell, CEO of DeleteMe
  • Matt Seguin, Senior Principal in Mortgage Fraud Solutions at Cotality
  • Cotality
  • DataTree
  • Palantir

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