If you’re a potential home buyer, a realtor working with clients, or a homeowner considering a refinance, then this PSA is for you. Don’t be caught off guard by unwittingly becoming a trigger lead. You’re probably asking yourself, “What is a trigger lead? How can this affect me?” We’ll explain it all so you can protect yourself against them.

 

 

Your personal credit score is a major factor in mortgage qualification and determining the rate you are offered from a mortgage lender. Having your credit run can reduce your credit score. A recent development in the credit arena is the introduction of what are called trigger leads.

 

 

Say you decide to buy a home and get a mortgage.  You call a mortgage company recommended to you by a realtor, a family member or friend. You complete the loan application and receive a letter of pre-approval. Then, out of the clear blue, a different mortgage lender calls you. The lender may say that they are affiliated with a credit bureau or give some other red-flag reason for calling. You may be wondering, “How did they know I was looking to get a mortgage and why are THEY calling me?”

 

When you apply for a loan, the mortgage lender (like Greenway) “hard pulls” your credit from one of the 3 credit bureaus (Equifax, Experian, TransUnion), your information is transmitted to them and your credit information is returned. The mortgage lender (Greenway) is charged a fee for this report.  This triggers an inquiry.

 

What happens next? The credit bureaus then turn around and sell your name to other mortgage companies. It’s not against the law for credit bureaus to sell your information to third-party vendors. This is called a trigger lead. Even those Greenway Mortgage does not send your email address or cell phone number, the credit bureaus use big data to determine both. This is when you become flooded with calls from other lenders (LOTS OF THEM).

 

 

Here at Greenway, we do not deter clients from shopping around. We hope that you choose to work with someone who is a trusted professional because after all you’re about to enter one of the biggest transactions of your life, and the last thing you need is a telemarketer calling you. So, it’s important to deal with a trusted professional like Greenway Mortgage.

 

Until recently, there was no way around this issue. Greenway must run your credit in order to determine qualification. And, even though we usually only run 1 bureau up front, we have to run all 3 once you have a loan in process. Every time we add another bureau, a new wave of trigger lead calls hits our clients.

 

 

(1) The NAMB is lobbying congress to outlaw trigger leads. We are supporting that effort.

 

(2) We now have access to "soft pulls" for qualification purposes. Soft pulls will not impact your credit score and DO NOT initiate trigger leads. It's important to note that once you have a loan in process, we will need to hard pull your credit. But we have a solution for that too, read on.

 

 

Put your name and phone number on the National Do Not Call Registry for your credit report. Go to https://www.optoutprescreen.com/ and process your opt-out request.

 

 

#1: The first can take up to 5 days before it's in effect and lasts for 5 years. (Make a note to re-register every five years!)

 

#2 The 2nd requires that you complete a form and print, sign and mail it. This will take some time so if you're planning to apply for a mortgage, get the process started NOW! Note: If you're already receiving trigger lead calls, it may take some time for the opt out request to propagate to the callers.

 

The sale of your personal information can continue after the mortgage has been funded and closed. Who knows, you might be a targeted candidate for a mortgage refinance. So, it’s very important to protect yourself now. Greenway is starting to use soft pulls to prevent the trigger leads up front and we're suggesting our clients start the opt-out immediately so they are protected when we need to do a hard inquiry.

 

Many clients have reached out to us in regards to trigger leads and the constant barrage of calls. Don’t be caught off guard and don’t become a trigger lead. Act Now! Here’s the link again: https://www.optoutprescreen.com/ . As an FYI - This also pertains to consumers seeking financing for an auto loan. You too can opt out of having your information sold as a Trigger Lead.