During the mortgage application process, frustrating and confusing communication from other mortgage companies and banks may flood your phone, email and snail mailbox. In this post we’re going to dive deeper into what a “trigger lead” is. We’re also going to give you some guidance as to how to mitigate the effects of these leads.
What is a trigger lead?
As a mortgage broker, we will review your credit report during your loan application review. During the application, you authorized us to review your credit report. This requires information being transmitted and delivered from the three major credit bureaus. This comes in the form of a tri-merged “credit review”. When we request that information from our vendors the credit bureaus transmit the need and the data and information to third parties as lead data for lines of credit. This is known as a “trigger lead”. At The Orlicki Group, we do not participate as a company in trigger leads as we find the process to be very predatory.
Since you have been pinpointed as a “mortgage opportunity” other larger banks and mortgage lenders will attempt to contact you and sell you on their mortgage programs. These points of contact can range from phone calls to print mail. Often times, the salesperson will hard sell you on better rates, terms and mortgage programs or even add confusion to the process by noting that they are following up with you for your current application which is not the case WE WILL NEVER SELL YOUR DATA OR INFORMATION TO A THIRD PARTY.
This practice has been deemed so predatory that there has been national legislation put forward to try and make trigger leads illegal.
What should I look out for?
Unfortunately there is some likelihood that you’ll be peppered with communication after we review your application. Should you receive any phone calls, emails or mail correspondence please verify that it is someone from the Orlicki Group. We have seen past clients get misguided into “teaser” rates and end up paying more in the long run. Most often the loan with the lowest rate can come with highest cost in the form of astronomical fees and paid points which are usually not worth the cost.
If you do receive any communication from another lender we’re happy to verify the details and offer you a direct comparison. The upside of working with a broker is that we shop your loan scenario around for you, negating the need for you to waste time and your credit having multiple lenders or banks provide you estimates and details. Often times, the delays of trying to coordinate with multiple lenders and offers makes the entire home buying or refinancing process confusing and frustrating.
Is there any way for me to stop trigger leads?
Unfortunately the bad news is there is no surefire way to mitigate trigger leads unless steps are taken weeks ahead of time. However, these steps can benefit you in the long run by protecting your information and shielding you from spam calls and other trigger attempts.
Request to be removed from follow up.
If you receive multiple phone calls from another lender trying to scam you, simply ask to be removed from their efforts and the calls should cease immediately. You can also unsubscribe from any email correspondence to keep your inbox free of junk and confusing inquiries.
Register at DMAchoice.org
The Data and Marketing site allows you to select which means and offers you can receive from third parties.
Opt out of future credit offers
Sign up at optoutprescreen.com and under the Fair Credit and Reporting Act (FCRA), credit bureaus are prohibited from selling and sharing your credit information for other lines of credit, credit cards, insurance or other loans.
Register with the National Do Not Call Registry
Visit the website above and enter your information. If you received an unwanted call after your number was on the National Registry for 31 days, report it to the FTC
If you have any questions about trigger leads or have been contacted by another lender during your loan application and pre-approval process please reach out to us directly so we can mitigate any harm that could occur and potential loan delays.