What Are Mortgage Trigger Leads?

If you’ve ever applied for a mortgage—or anything that requires a hard inquiry into your credit, such as a loan or new credit card—it’s likely you may have also started receiving unsolicited offers for other credit products. These calls, emails, and even physical mail are more than likely the result of what is known as trigger leads, in which the three national credit bureaus may legally sell your contact information to interested parties after a potential borrower’s credit report is accessed as a result of a recent credit inquiry.

While the practice is legal, many consumers find these unsolicited offers from mortgage lenders and insurance companies unsettling. The good news is that you can easily opt out of these offers. In this article, we’ll explain exactly how trigger leads work and how you can prevent or stop them.

How Do Mortgage Trigger Leads Work?

Mortgage trigger leads are generated when one of the major credit bureaus—Experian, Equifax or Transunion—receives a request for your credit report. When you apply for a mortgage loan, a mortgage broker or lender will perform a hard inquiry on your credit report, which is a signal to the credit bureaus that you are seeking a mortgage. The credit reporting agencies then compile your information, which may include your name, contact information, and credit details, and sell it to other mortgage lenders and related businesses as a mortgage lead. These businesses then reach out to you with offers for their services, hoping to win your business before you finalize your mortgage.

Why Are Trigger Leads Legal?

The sale of trigger leads is permissible under the Fair Credit Reporting Act (FCRA), a federal law governing how consumer credit information can be used and shared. While it may seem invasive, the FCRA allows for sharing your information under specific circumstances, and mortgage trigger leads fall within these parameters. The credit bureaus argue that trigger leads provide consumers with competitive options, potentially helping them secure better mortgage rates.

Downsides of Trigger Leads

• Despite the legal standing, many consumers find mortgage trigger leads to be a nuisance. Here are some of the common issues associated with them:
• Privacy Concerns: Many people are uncomfortable with their personal information being sold without explicit consent.
• Overwhelming Contact: Receiving numerous calls, emails, and mail from different lenders can be overwhelming and stressful. Some calls may even claim to come from your lender, but are in fact from other lenders.
• Scams: Some of the unsolicited offers might not be legitimate, posing a risk of fraud.
• Confusion: Multiple offers can be confusing, making it difficult to discern which ones are credible and beneficial.

How to Opt Out of Trigger Leads

If you want to avoid the barrage of unsolicited offers, there are several steps you can take to opt out of mortgage trigger leads.

1. Opt-Out Prescreen

The simplest way to opt out of trigger leads is to use the Opt-Out Prescreen service, which is operated by the major credit bureaus. This service allows you to remove your name from lists that the bureaus sell to lenders and insurance companies. There are two methods to opt out:

• Online: Visit the Opt-Out Prescreen website and complete the online form to opt out for five years.
• Mail: For a permanent opt-out, you can download a form from the same website, fill it out, and mail it to the provided address.

2. National Do Not Call Registry

Registering your phone number with the National Do Not Call Registry can also reduce the number of unsolicited calls you receive. While adding your information to the do not call list won’t eliminate all calls related to trigger leads, it can help reduce the volume. Again, there are two methods to add your name to the Do Not Call Registry:

• Online: Visit the Do Not Call Registry website and register your phone number.
• Phone: Call 1-888-382-1222 from the phone number you want to register.

3. Direct Marketing Association

Opting out of prescreened credit offers can drastically reduce the amount of unwanted solicitations from lenders and insurers, but it won’t keep you off other mailing lists. If you want to limit the contact you receive from companies seeking your business as much as possible, you can also opt out of other unsolicited mailing lists through the Direct Marketing Association (DMA):

• Online: Visit www.DMAchoice.org to create an account with the Direct Marketing Association (DMA) and decide which mail you want to receive from DMA members. There’s a $2 processing fee, which will cover you for 10 years.

4. Protecting Your Credit Score

In addition to opting out of mortgage trigger leads, it’s important to protect your credit score during the mortgage application process. Here are some tips:

• Monitor Your Credit: Regularly check your credit reports for any errors or suspicious activity. You can get a free report from each of the three major credit bureaus once a year through AnnualCreditReport.com.
• Freeze Your Credit: A credit freeze prevents anyone from pulling your credit file—whether it’s a scammer, a potential lender, or just yourself. Freezes are relatively easy to manage; if you do need to apply for a loan or a card, you can lift the freeze temporarily for a few days while your application is processed Lenders are very familiar with credit freezes, and they can tell you exactly how long to lift it for.
• Limit Hard Inquiries: Too many hard inquiries in a short period can negatively impact your credit score. Be strategic about when and where you apply for credit.
• Maintain Good Credit Habits: Continue to pay your bills on time, keep your credit card balances low, and avoid opening new lines of credit unnecessarily.

Be Cautious of Scams

As mentioned earlier, one of the downsides of trigger leads is the potential for scams. Fraudsters may use the information obtained through trigger leads to target vulnerable individuals. But you can protect yourself by following the tips listed below:

• Verify the Source: If you receive an unsolicited offer, verify the legitimacy of the lender before providing any personal information.
• Watch out for Red Flags: Be cautious of offers that seem too good to be true, high-pressure sales tactics, or requests for upfront fees.
• Secure Your Personal Information: Never provide sensitive information, such as your Social Security number or bank details, over the phone or email unless you are certain of the recipient’s legitimacy.

Confidently Complete the Mortgage Application Process

Mortgage trigger leads are a legal but often unwelcome aspect of applying for credit. While they can offer competitive options, the influx of unsolicited offers can be overwhelming and invasive. As your trusted loan originator, Amplify Credit Union wants to make sure you do not get bombarded with solicitations you don’t want. By understanding how mortgage trigger leads work and taking steps to opt out, you can regain control over your personal information and reduce unwanted contacts. Protect your credit score during the residential mortgage process and stay vigilant against potential scams.

By following these tips, you can navigate the mortgage application process with confidence, knowing that your personal information is secure and that you have the tools to make informed decisions about your financial future.