What is a Trigger Lead?

Quite often during the loan application process, prospective clients experience frustrating and confusing communication from other mortgage companies and banks, who will inundate your phone, email, and snail mailbox. In this article we are going to explain exactly what a “trigger lead” is. We are also going to give you some guidance as to how to mitigate the effects of these leads.

As a mortgage broker, we review your credit report during your loan application process. During the application, with your authorization, we review your credit report. This requires information being transmitted and delivered from the three major credit bureaus, and comes in the form of a tri-merged “credit review”. When we request information from our Credit Bureau vendors, the Credit Bureaus transmit the data and information to other third parties as lead data without our knowledge. Brokers will pay the Credit Bureaus for these “leads” (your information) This is known as a “trigger lead.” Indigo Mountain Mortgage does not ever purchase Trigger Leads, as we feel it is unethical and 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 and texts, to print mail. Often, 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, it is highly likely 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 Indigo Mountain Mortgage. 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 “points” that you as the borrower must pay, which are usually not worth the cost.

If you do receive any communication from another lender, we are 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, 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?

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.

 

We encourage you to take the following steps, even if you are not purchasing or refinancing a home right now.  Protect your privacy!

 

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
https://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
https://www.optoutprescreen.com/
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
https://www.donotcall.gov
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.