Data leak exposes 24 million mortgage documents

 Uncategorized  Comments Off on Data leak exposes 24 million mortgage documents
Jan 302019
 

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

You may be wondering as I am about the recent data breach involving mortgage records. Unfortunately, I’ve found very little reporting about it, but what I have found is disturbing.

“Breach” probably isn’t the correct term for this event because the data was left on an unsecured server for at least two weeks until a security researcher discovered it on Jan 15th. The company responsible for the data, Ascension, was an analytics company for the mortgage industry, and the leaked data belonged several major banks as well as federal agencies including HUD.

The leak was significant – 24 million documents. The company that owned the server converted paper documents to digital records, and it’s those records that initially were exposed. The researcher who discovered the trove stated the records were not easy to follow, but research firm TechCrunch discovered Social Security numbers and other sensitive financial information and was able to verify the authenticity of the data through public records.

Ascension tracked the leak to one of its vendors, OpticsML, and it seems to be ducking the unwelcome notoriety. Ascension says it has initiated a forensic investigation and notified authorities. At least one of the impacted banks, Citi, said it’s working to identify potentially affected customers.

Equifax data breach prompts Fannie to change guidelines

 Loan Guidelines, Residential Mortgage  Comments Off on Equifax data breach prompts Fannie to change guidelines
Jan 202018
 

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

The recent Equifax data breach affected millions of consumers. One of the remedies suggested by cybersecurity experts was for consumers to freeze their credit files with Equifax. The credit bureau made it easy for consumers to initiate the freeze, so many followed the advice.

Unfortunately, cybersecurity experts aren’t mortgage experts, so they didn’t realize the potential ramifications of freezing one’s credit. Mortgage guidelines require a lender to obtain credit information from all three major credit bureaus. If credit has been frozen, the applicant must unfreeze the file before the lender can approve the loan.

Fannie Mae recognized the potentially significant impact of this situation and changed its guidelines. For now, if a borrower’s credit file is frozen at one credit bureau, a lender can proceed as long as credit data is available from the other two bureaus and at least one of them reports a score.