What is a “trigger lead” and how can it affect your mortgage application?
How does a mortgage application “trigger” other lenders to start contacting the consumer?
Most likely, you’ve probably never heard of the term “mortgage trigger lead”, but as a consumer or Realtor, it is important to know these details and how it can impact a mortgage application.
In today’s short video, I will discuss “trigger lead” details and what proactive steps may be taken so you can avoid potential problems!
However, before we get started, don’t forget to take advantage of our Second Chance Service.
This is a great way to get access to an expert second opinion which can be especially helpful for those recent loan denials or if you are just in need of guidance on how to make the most out of your home loan qualification.
So what’s a trigger lead?
When applying for a mortgage, a credit report is processed which takes information obtained from the national credit bureaus. One or more of the bureaus then convert the fact that you are shopping for a mortgage into a commercial product — a trigger lead — which is then sold to competing lenders, thus allowing multiple lenders whom you have never even spoken to or known about, to solicit you solely based on the fact that you had inquired for a mortgage.
Many times, trigger leads are created and sold within 24 hours of your credit inquiry and within hours, your phone may start ringing and within days offers may even start arriving by mail which may include enticing terms that may be deceptive, or if legitimate, it could be no better than what you have already been quoted.
Further, because so many of these lead-driven offers have been deceptive, there has been a push by industry advocates for an outright ban on trigger leads sold by the national credit bureaus due in part to the inevitable risk of identity theft and the disruption it causes to consumers during an ongoing mortgage transaction.
As you can see, a major concern for consumers is that they may not know who they are really talking to and because so many are frequently misled, it can lead to uncertainty and if they should believe what the caller is offering or not.
Additionally, because the main objective of some trigger calls is to “convince” consumers into applying with their company, many individuals have been tricked into allowing these lenders to pull credit and reveal their financial information.
However, it is not until after speaking with their original lender that the consumer realizes they have inadvertently opened a credit file with an unknown entity.
Here are some ways to protect your information and stop trigger lead harassment:
- Register through the Federal Trade Commission (“FTC”) National Do Not Call Registry.
- Also, you can sign up for OptOutPrescreen through the Federal Trade Commission site if you don’t want to receive prescreened offers of credit and insurance.
- Additionally, by opting out, this can have the secondary benefit of increasing your credit score!
Metroplex Mortgage Services has been a trusted resource since 2001 and is here to help make your mortgage transaction successful.
Just call or email to discuss your scenario and let us show you the “Metroplex” difference.
800-806-9836 Ext. 280
As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
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