With lower mortgage volumes and increased competition for business, many lenders have resorted to purchasing leads from the credit bureaus to contact any borrower who has their credit pulled by a mortgage company. This has led to consumers receiving upwards of a reported 60 calls immediately after having their credit pulled.
It works like this: Mortgage Company A pulls a borrower’s credit. Mortgage Company B has a contract with the credit bureaus to be notified any time a consumer has a credit report pulled by another mortgage company and meets a minimum credit score. The credit bureau then provides the publicly available contact information for the consumer who meets Mortgage Company B’s criteria and Mortgage Company B then solicits the borrower. The leads that Mortgage Company B purchases are called “Trigger Leads” because the borrower’s credit pull triggered the solicitation. Unfortunately, there are dozens of Company B’s that are purchasing the same leads.
The Federal Trade Commission currently allows the practice of selling trigger leads as they feel it provides consumers more options. Many consumers understandably feel differently. Currently, legislation is pending which would amend the Fair Credit Reporting Act to prohibit the creation and sale of trigger leads as the practice has been deemed to hurt consumers and damage the overall mortgage marketplace.
Until such legislation passes, mortgage seekers can avoid receiving countless irritating phone calls by opting out. To do so, consumers can go to www.optoutprescreen.com or call 1-888-567-8688.