Equifax Canada has implemented changes to its mortgage inquiry process to enhance the protection of consumer information.
The changes, which were first announced to the industry earlier this year, came into effect on September 14, including:
- Requiring all lenders to have an identifying Member Number if they want to continue receiving files from brokers.
- Only brokers who have signed amended contracts will be able to obtain credit files through industry connector platforms, such as Newton and Filogix.
- Each and every inquiry will be posted with both the broker’s and lender’s name when using all industry connector platforms. Access to these files will be restricted to credentialed lenders.
“Essentially, we’ve made these changes for the primary benefit of the consumer,” Roger Mitchell, head of Financial Institutions Strategy & Innovation at Equifax Canada, told CMT. “By ensuring that all credit inquiries are posted to a consumer file, there will be a fuller and more accurate picture of who has access to consumers’ files. We feel doing this will strengthen consumer trust and provide the right level of transparency to consumers.”
Given that the changes were “fairly substantial,” Mitchell noted that Equifax worked hand-in-hand with all of the different stakeholders to ensure a smooth transition.
He added that industry feedback has been very positive. “Everyone understands the reasons why we’re doing this and the feedback and sign ups have been tremendous,” he said.
Benefits to Brokers and Lenders
While the new requirements were designed primarily to provide greater safeguarding and oversight to protect consumers, Mitchell notes there are additional benefits for industry partners.
Lenders benefit from a system that captures all consumer file activity and inquiries, which results in improved insights and analytics.
“We know that improved data accuracy leads to better credit decisions,” Mitchell said.
Brokers will similarly benefit from the access to additional data to help them better understand their client’s credit history. Equifax adds that an Enhanced Broker Credit Report is being launched to help brokers and lenders gain deeper insights into mortgage applicants and to help improve information accuracy.
Brokerages that have not yet signed their amended contracts can do so at the following address: https://www.equifax.ca/BOI/en/form
Lenders that have not yet been credentialed are asked to contact Equifax at na.account.services@equifax.com
I am trying to understand why my credit score goes up and down and no one can tell me why. That is Equifax and Credit Karma. Thanks Arnie Ward
If my credit score is confidential information, who allowed Equifax, Trans Union, Credit Karma, etc. to share this information without my knowledge or authorization? I know I didn’t!
Also why is it my responsibility to make sure the information they share is correct? Something messed up with this whole process not to mention the recent cyber-thefts.
Max, IF you use Credit Karma – you would give authorization to them to pull your credit from Equifax or Transunion. Furthermore, when you apply for a credit product you give authorization to the credit/lender to report to the credit bureau. You should always keep an eye on your credit and can also add security measures to protect your credit by putting a block or a lender to call you before credit bureaus are pulled. Cheers!
I am presently trying to refinance my mortgage, taking my mother off title and adding my girlfriend. Is it true that every time we want to check out a mortgage lender and their options and they draw credit info from Transunion or Equifax that my credit rating would drop? If so WHY? That policy would deter customers from searching different lenders and helps lenders keep loyalty!