How You Become a Mortgage Trigger Lead and Tips on How to Stop It

Guest post by Sam Parker at MyCreditGuy

Table of Contents

• Key Takeaways
• What Are Mortgage Trigger Leads?
• Why Are You Receiving Unsolicited Calls?
• Why You Should Be Cautious
• How to Reduce Unsolicited Mortgage Calls
• Why These Measures May Not Fully Stop the Calls
• What to Do When You Receive Unsolicited Mortgage Calls
• Proposed Legislation To Reform Trigger Leads
• Conclusion
• Frequently Asked Questions (FAQ

Key Takeaways

Getting your credit pulled by a mortgage adviser can feel like a significant step toward securing your dream home. However, what many consumers don’t realize is that this action can unintentionally expose them to a flood of unsolicited calls. In this article, I’ll explain the concept of mortgage trigger leads, why you become one when you apply for a mortgage, and how you can protect yourself from the barrage of calls that follow.

What Are Mortgage Trigger Leads?

Simply put, mortgage trigger leads are generated when a mortgage company pulls your credit report as part of your loan application process. The credit bureaus then package and sell this information to other mortgage companies who want to reach out to you with competing offers.

Here’s the kicker: if you just had your credit pulled by a trusted mortgage adviser — someone you’ve likely done your homework on and want to work with — you might unknowingly become a trigger lead. The credit bureaus sell your details to anyone willing to pay for them, which results in multiple unsolicited mortgage companies calling you.

Why Are You Receiving Unsolicited Calls?

Once your credit report is pulled, expect calls from various mortgage companies that you never contacted. These companies are competing for your business and will often say whatever they think you want to hear to convince you to switch lenders.

These calls can be persistent and sometimes downright aggressive. They want to lure you away from your trusted mortgage adviser, often making promises of better rates or faster approvals without you having to do much work.

Why You Should Be Cautious

It’s tempting to answer the phone and explore these offers, especially when they sound attractive. But remember, you’ve already done the research to find a trusted mortgage professional who understands your financial situation and goals.

Jumping from one company to another based on cold calls can lead to confusion, misinformation, and potentially harmful financial decisions. The best course of action is to stay with your trusted mortgage adviser unless you want to independently research your options.

Do Your Own Research

If you’re curious about other options, don’t rely on random calls. Instead, take the time to do your own research online, check reviews, compare rates, and reach out to reputable companies directly. This way, you’re in control of the process and can make informed decisions rather than being pressured by cold callers.

How to Reduce Unsolicited Mortgage Calls

Unfortunately, there’s no surefire way to completely stop these unsolicited calls right now. The system is designed to profit from your mortgage inquiry, and until laws change, this practice will continue.

However, there are a couple of steps you can take to minimize the number of calls you receive:

1. Opt Out Through OptOutPrescreen.com

OptOutPrescreen.com is a free service provided by the credit reporting industry where you can choose to opt out of receiving prescreened offers based on your credit report for five years electronically. It’s a good first step to reduce unsolicited marketing calls and offers.

2. Register on the National Do Not Call List

The National Do Not Call Registry allows you to register your phone number to reduce telemarketing calls. While it doesn’t guarantee a complete stop, it can cut down on calls from companies that respect the registry.

Why These Measures May Not Fully Stop the Calls

Even after opting out and joining the Do Not Call list, you may still receive calls. This is because mortgage trigger leads are a legal practice, and many companies operate outside of strict telemarketing rules or find loopholes to contact you.

Until regulatory changes are made, this is just part of the mortgage inquiry process. The best defense is to be aware of the situation and not engage with unsolicited callers.

What to Do When You Receive Unsolicited Mortgage Calls

When your phone rings and it’s an unknown mortgage company, here are some tips to handle the situation:

1. Don’t answer if you don’t recognize the number. If you do answer, don’t feel pressured to commit or share personal information.
2. Politely decline the offer. You can simply say you’re already working with a mortgage adviser.
3. Hang up immediately if the caller becomes aggressive or pushy. Your time and peace of mind are important.
4. Keep notes of persistent calls. If harassment becomes an issue, you can report it to consumer protection agencies.

Remember, you’re already most likely working with someone who has your best interests at heart. These calls are just a byproduct of the current system.

Proposed Legislation To Reform Trigger Leads

Please tell your congressional representative that you support the Homebuyer Privacy Protection Act to prevent trigger leads. You can sign the petition by clicking here.

Conclusion

Becoming a mortgage trigger lead is an unintended consequence of the credit inquiry process when applying for a mortgage. While it can be frustrating to receive unsolicited calls from mortgage companies, understanding why it happens can help you manage the situation better.

Stick with your trusted mortgage adviser, do your own research if you want to explore other options, and take advantage of opt-out services to reduce unwanted calls. Until the laws change, these calls will likely continue, but with awareness and caution, you can navigate this process confidently.

For help with your mortgage or credit questions, don’t hesitate to reach out to trusted professionals who prioritize your needs over aggressive sales tactics.

Frequently Asked Questions (FAQ)

What exactly is a mortgage trigger lead?

A mortgage trigger lead is your personal information, including your credit inquiry, sold by credit bureaus to other mortgage companies after you apply for a loan. These companies then contact you with unsolicited offers.

Why do I get calls from mortgage companies I never contacted?

Because your credit inquiry was sold as a trigger lead, multiple mortgage companies get your info and try to compete for your business by calling you directly.

Can I stop these unsolicited mortgage calls completely?

Not entirely, but you can reduce them by opting out at optoutprescreen.com and registering on the national Do Not Call list. Unfortunately, calls may still come until laws are updated.

Should I trust offers from unsolicited mortgage companies?

It’s best to be cautious. These companies often use aggressive tactics to lure you away. Stick with advisers you’ve researched and trust, or do your own research before considering new offers.

What is the best way to protect my information?

Besides opting out and using the Do Not Call list, be mindful of who you share your information with and regularly monitor your credit reports for any unauthorized activity.