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Mortgage Loan Applications & Trigger Leads

Trigger Leads: What are they & how do they affect me?

Have you filled out a mortgage application with one lender and wondered why you were quickly contacted by another? This could be a result of Trigger Leads.

What is a Trigger Lead? 

Trigger leads were created by the national credit bureaus. When you apply for a loan, a credit report is drawn and this action triggers an inquiry. Ultimately, the credit bureau is made aware that you are searching for a loan and has the ability to sell your information to various lenders. These leads are created and sold within 24 hours of a loan application.

Is it legal?

Yes. Trigger leads are legal. Many people even find it ethical. Trigger leads allow consumers to be contacted by additional loan officers which can provide opportunity to ensure you are receiving the best rates possible.

While this may be true, we encourage our customers to be on high alert when contacted with unsolicited offers. Trigger leads could open consumers up to identity theft, expose them to deceitful lenders and cause confusion during the process of taking out a loan.

Rebecca Steele, president and chief executive officer at the National Foundation for Credit Counseling, says, “With trigger leads, you have to be very careful. It’s important to know who you’re dealing with, especially with so much out in the digital world related to fraud and unscrupulous lenders.”

How can I prevent this from happening to me?

  1. Put your name and phone number on the National Do Not Call Registry. Ensure you do this 30 days prior to applying for a mortgage as it typically takes a month for it to go into effect.
  2. Sign up for OptOutPrescreen. This is the official Consumer Credit Reporting Industry website to accept and process requests from consumers to Opt-In or Opt-Out of credit card or insurance offers and the risk of fraud that comes with them.
  3. Sign up at DMAchoice. This will prevent you from receiving loan offers through the mail. Online registration is available. 

Have more questions?

We are here for you! Contact one of our mortgage loan officers today! You can email, call (888) 332-5132 or stop by one of our convenient locations. Our trusted lenders are happy to answer any further questions you may have about the safety of your information.