How to get and Stop Trigger Leads

Trigger Leads are targeted contacts/leads that loan providers seek from the major Credit Reporting Bureaus, for their telemarketing and or direct mailing activities. The respective bureaus sell a person's credit report file almost at the instant a loan officer has pulls it to take a look at a consumers credit qualifications for a mortgage or automotive loan. When this loan provider pulls a hard inquiry on the prospects credit, this triggers the system to make this individual available to others that may be able to help by making an offer that beats the original.

Stop Triggers for your Mortgagors:

Trigger leads are not an unethical way for lenders to gain prospects,  by being honest and making a true offer they can actually save the prospects a lot of money, however, we have your best interest in mind so here is some advice for you, the lender to secure your clients and keep the trigger program away from “your work in progress “

• Offer information for your own clients to “opt out” of this so called service of the credit bureaus, we suggest that you offer them a “way to avoid a swarm of unsolicited calls” by contacting the agencies here: www.optoutprescreen.com or have them call 888-5-OPTOUT (1–888-567-8688)
  
  
• Leave out the phone number on the AOS system until you have the credit report. The borrower will still get added to a trigger lead form mail but direct mail is slower and this will offer you time to get a relationship established.
  
  
• Join NAMB, they are working hard to stop the trigger lead generating process.

How a Triggered Lead works

In the past few years, a rise in the number of people/companies/agencies buying "trigger leads" has been observed. Here's how a trigger leads works. A mortgage/other relevant credit inquiry event is created and usually flagged against a loan borrower’s credit track report. Essentially, this means that many lenders in the market come to know that a particular person is most probably looking for a mortgage loan, and more often than not, a consumer doesn't even come to know that he/she has turned into a trigger lead.

What Do The Credit Bureaus have to say?

Credit bureaus defend their trigger lead selling activity, saying that such leads give rise to competition among mortgage loan companies and brokers. According to their point of view, they claim to help consumers, by making available them various mortgage options and offers from different lending institutions. They believe this increase in competition keeps the interest rates and other charges down. Surprisingly, the Federal Trade Commission seems to support this stance, by saying that consumers actually stand to benefit from this activity.

Are such leads a mortgage broker's friend or foe??

Yes, credit bureaus to make some quick, extra bucks off consumer data, on the pretext of making them believe that they're going to get the best available loan in the market but if we would just please think over and analyze the situation we can see that trigger leads are the way to go.

Mortgage Trigger Leads