Trigger Leads

What are trigger leads?

Trigger leads are a product offered by all three credit reporting agencies - Equifax, Experian, and TransUnion. When anyone completes a loan application, the lender pulls their credit. An inquiry and the type of inquiry are reported each time credit is pulled. This inquiry is the trigger that the consumer is purchasing or refinancing a home. The consumer’s information is then sold to other lenders as “leads,” which are notices to other mortgage lenders that a consumer is seeking a mortgage loan.

These leads contain names, contact information, and other data of consumers who apply for a mortgage. This information is considered the legal property of the credit bureaus. Even when the lender excludes all contact information when pulling credit, the bureaus already have nearly everyone’s contact information on file.  This is NOT a lender selling or sharing information.

Mortgage trigger leads are legal under the Fair Credit Report Act. The Federal Trade Commission’s (FTC) stance is that they are beneficial for consumers because they allow the consumer to obtain multiple offers to make sure they are receiving the best deal on a mortgage. They can, however, cause the target to feel like they are being spammed and bombarded with unsolicited telemarketing calls. Trigger leads can also open the door to identity theft, fraud, and predatory lending. Many times, the lenders try to confuse the consumer by making it look like they are affiliated with their current lender.

There are also auto, insurance, and credit card trigger leads. Mortgage trigger leads are the most utilized type, and an individual can receive more than 50 calls in a single day.

What can you do to help protect your relocating employees?

Employers should partner with a trusted lender as part of their relocation policy. By working with a preferred lender, employers can feel confident that their employees are working with a reputable mortgage lender who does not share or sell their information. Although a lender cannot prevent the credit bureaus from sharing leads, they can advise the relocating employee of the practice and provide guidance on how to navigate various offers.

What can employees do to prevent this?

For employees who are not interested in these offers, it’s best to ignore them. There are a few options that can help reduce future unsolicited offers:

• Register for Do Not Call: The National Do Not Call Registry is free and can help limit telemarketing calls. Visit donotcall.gov or call 1-888-382-1222 from the phone number you wish to register. A number stays on the registry for five years, until it is disconnected, or until you take it off the registry. It can take up to 31 days for calls to stop.
• Opt-out of prescreened offers: To opt out of prescreened offers, the employee can call 1-888-5-OPTOUT (1-888-567-8688) or visit optoutprescreen.com. When the employee calls or visits the website, they will be asked to provide personal information, including phone number, name, Social Security number, and date of birth. The information provided is confidential and will be used only to process the request to opt-out. The request to opt-out will be processed within five days, but it may take up to 60 days to stop receiving these offers.
• Contact the bureaus directly and ask them NOT to provide your information for trigger leads: Experian, TransUnion, Equifax

It’s important to note that opting out of prescreened offers does not affect the employee’s ability to apply for or obtain credit. If or when they want to opt back in, they can use the same telephone number or website.

While taking these steps will limit the unsolicited marketing employees receive, many companies use other tools to identify marketing prospects. Even if the employee opts out of prescreened offers and puts their number on the National Do Not Call Registry, they should still expect some unsolicited offers. Because it can take up to 60 days for the opt-out to take effect, we suggest employees begin taking action as soon as they learn about a potential relocation. This can greatly reduce the number of unsolicited lender calls.

If you would like to learn more, the Federal Trade Commission (FTC) has resources that can help:

• More information on prescreened offers? Read here.
• Want to learn more about your credit report and when creditors can access it? Read here.
• How can I stop receiving junk mail? Read here.

As always, if you have any questions about relocations and mortgage services, please reach out to one of our expert loan officers