As reported on Twitter by an early tipster to the Lead Critic, and quickly confirmed by LendingTree in letters to customers and a website FAQ, LendingTree uncovered a breach of internal security that allowed some mortgage lenders unauthorized access to customer qualification forms. This is LendingTree’s description of the incident:
Recently, LendingTree learned that several former employees may have taken Company passwords and given them to a handful of lenders. These lenders then used the passwords to access LendingTree customer information files, normally available only to LendingTree-approved lenders, to market loans to LendingTree’s customers. The files contained loan request data such as name, address, email address, telephone number, Social Security number, income and employment information.
What are the early reactions to this incident?
Media
Early coverage was light and mundane. Best represented by a local article in the Charlotte Observer.
Competitors
I thought that this press release on identity theft from Bankrate.com was very coincidental (timed?) .
Mortgage Lenders
One current LendingTree lead buyer, felt like it was well handled and would not create much impact.
Another former mortgage lender and lead buyer just felt like it was likely a common occurrence at many notable online lead providers and within the technology departments of lead buying mortgage lenders.
Customers
Some think that consumers rarely change their online behavior because of these incidents. This is my opinion and experience too.
Blogs
There seems to be more concern and angst here than anywhere.
Your Thoughts
Is the concern out of proportion? What are the ramifications, if any? To consumer? To the online lead generation market?
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