Mortgage trigger leads: How to stop unwanted sales calls

Mortgage trigger leads can result in a deluge of unwanted sales calls.  You apply for a home loan with a lender you trust, and suddenly, your phone rings nonstop with offers from strangers.

Here's how you can stop it for good.

What is a mortgage trigger lead?

A mortgage trigger lead is when the major credit bureaus sell your contact information to other lenders after you apply for a mortgage.

The check required for your loan application acts as a "trigger." It signals to the bureaus, Equifax, Experian, and TransUnion that you are in the process of shopping for a mortgage.

The credit bureaus instantly package your name and contact details into a sales lead. Then, they sell that fresh lead to multiple other mortgage companies in just minutes.

This system is why the aggressive calls and text messages start almost immediately after you apply. 

Here's a summary of how trigger leads work:

1. You apply for a mortgage and your lender checks your credit.
2. The credit check triggers the credit bureaus, Equifax, Experian, and TransUnion.
3. They sell your info to other mortgage companies, and the solicitation storm begins.

Did my mortgage lender sell my information?

No, your lender did not sell your information. The credit bureaus,  Experian, TransUnion, and Equifax, sell your data through a practice that, unfortunately, is legal under federal law.

At NewCastle Home Loans, your privacy is our top priority.

We know that protecting your personal information is essential to earning your trust, which is why we will never sell or share your information with anyone.

Are trigger leads legal?

Yes, trigger leads are legal under the Fair Credit Reporting Act (FCRA).  Federal law permits the credit bureaus, Experian, TransUnion, and Equifax, to sell your data unless you opt out.

The FCRA aims to encourage lender competition. However, the practice is highly controversial.  Many consumer advocates argue that trigger leads are an invasion of privacy and can lead to confusion and predatory lending practices.

What information does the credit bureau sell in a trigger lead?

Credit bureaus sell your basic contact information, including your name, address, and phone number.

Mortgage brokers purchasing trigger leads don't see your full credit report, exact credit score, or detailed account history.

Don't worry, they receive limited data, just enough to reach out with loan offers, but not enough to compromise your sensitive financial information.

How do I stop trigger lead calls for good?

To opt out of trigger lead solicitations, visit optoutprescreen.com and register your number. 

For extra protection, consider registering with the National Do Not Call Registry as well.

These simple steps will significantly reduce unwanted offers. 

1. Visit optoutprescreen.com or call 1-888-5-OPT-OUT and register to stop credit bureaus from selling your data for five years.
2. Register at donotcall.gov to block telemarketing calls.

It takes a few days for these actions to take effect. Companies already holding your information may still contact you initially, but the frequency of calls will decrease quickly.

Will opting out affect my mortgage application?

No, opting out won't affect your mortgage loan application.

Your privacy choice doesn't impact your loan approval or the lender's process. Opting out removes your name from marketing lists but doesn't limit the lender's ability to access your credit information.

Are the loan offers I'm receiving from these other companies legitimate?

No, loan offers from mortgage companies that purchased your information are untrustworthy. 

You should be extremely cautious when dealing with lenders that purchase trigger leads for a few reasons.

• Respect for privacy matters. If a mortgage broker buys your data instead of earning your trust, they may cut corners elsewhere.
• Bait-and-switch risk rises.  Mortgage brokers aggressively pitching unrealistically low rates are likely to change the terms after you engage.
• Your focus gets split. Dozens of calls distract you from comparing real offers and closing on time.

The bottom line: Be cautious of lenders who have purchased your information and are pressuring you. Verify credentials, read reviews, and compare Loan Estimates.

Stick with the lender you chose. NewCastle Home Loans will guide you along the path to homeownership, ensuring a smooth process.  You'll close on time, at the interest rate we promised, with service that exceeds expectations.