Trigger Leads

One of the most common questions we receive after a loan application is submitted is “Why am I being contacted by so many other lenders?” Here’s a quick explanation of why this happens and what you can do to prevent some of the marketing spam.

What is a trigger lead?

When you submit a mortgage application, we are required to pull a credit report to review your credit history. After your credit report is pulled, the credit bureaus (Equifax, Experian, and Transunion) will sell your contact information to other lenders for cold-calling purposes as a “trigger lead”, or someone who has expressed interest in obtaining a mortgage.

Is it legal?

Unfortunately, it is. While many in the industry feel that this sharing of information defies federal privacy regulations, the government has sided with the credit bureaus thus far. When asked to review the legality of the practice, lawmakers have taken the position that additional competition is in the best interest of the borrower.

Does Community Mortgage participate in this practice?

No. We believe that building relationships is the key to long-term success. Instead of buying leads and cold calling, we trust the strength of our 35+ year reputation. We focus on having the most knowledgeable staff and offering the best service to generate organic, word-of-mouth referrals.

How can I stop it?

Unfortunately, it’s not always possible to prevent 100% of marketing contacts, especially if you are on a short timeline. Here are three options recommended by the FTC to reduce the amount of marketing contacts you receive:

Register at OptOutPrescreen.com. This website allows you to opt out of information sharing by the major credit bureaus. Along with preventing the sale of trigger leads, this also prevents the sale of your information for pre-approved credit card and insurance offers. If you opt-out online, the request will stay active for 5 years. If you opt-out by mail, the request will be permanent. The processing time can be up to five business days from the receipt of the request.
Sign up for the National Do Not Call Registry. Your number will show on the registry within 24 hours, but it can take up to 31 days for sales calls to stop. Your registration will never expire.
Sign up at DMAchoice.org. This request will stop some physical junk mail from being sent to your address. Your registration lasts for 10 years. Note: there is a $4 processing fee to sign up at DMAchoice.org.