There is a disturbing practice in the credit reporting industry. The credit repositories are selling consumer data based on mortgage permissible purpose inquiries as sales leads often referred to as trigger leads. This program can result in your applicants’ data being subject to query and sale to competing brokers, lenders or worse yet – marketing companies which in turn resell them again as leads to untold numbers of mortgage brokers/lenders. All of this can occur within hours of your inquiry and this information can be filtered in such a way that the consumer often believes the unsolicited caller is looking at an actual copy of their credit report.
A Warning About
Trigger Leads & The TriggerProof TM Solution
As this data is being sold by the repositories, it largely does not matter what credit reseller you obtain your credit reports through, nor is it possible for you to do anything with reference to your account with your credit bureau to avoid your applicants’ personal information being sold through trigger leads. When your account is established with your credit reporting agency, the permissible purpose code is set and must reflect the intended use (i.e. mortgage/real estate lending.) Any attempt to “fool” the system would fail as physical inspections are required by all repositories to verify the intended use of the credit data.
A warning against submitting false data in an attempt to “fool” the repositories
Over the years many attempts to disrupt the bureaus from selling the consumer’s contact information have been tried including supplying incorrect phone numbers (often that of the Loan Officer.) These efforts are generally unsuccessful. The repositories generate significant revenue from trigger lead sales and have in place tools to compare data provided in the dataset of the credit report inquiry against the data they have on the file. They will reject the altered phone number and instead provide the previously provided consumer contact information. The end user also risks creating file variations and potential FACTA Red Flag issues that can result in damage to the consumer.
There is an Opt-Out process whereby a consumer can remove themselves from most marketing programs (888-5-OPTOUT or https://www.optoutprescreen.com ). However, this process takes up to 5 days to become effective – so it is of little value in protecting mortgage applicants from trigger leads. We are now seeing complaints from consumers that indicate they followed the opt-out process and were still subject to unsolicited contacts through trigger leads.
Your Applicants, & Your Pipeline
Credit Technologies Will Never
Sell Information Pertaining to You or Your Borrower
Failing to protect your applicants from the abuses of trigger leads often results in the belief “you” were the source of their personal information being provided to dozens of other brokers and lenders.
Credit Technologies has developed an education program to protect your applicants against the onslaught of competitors buying their personal information. The TriggerProofTM program not only teaches you how to prevent the loss of a client, it gives you the resources to actually benefit from the actions of your competitors. TriggerProofTM is part of our Mortgage Alchemy program and is available exclusively to Credit Technologies’ clients.
Credit Technologies does not participate in the sale of Trigger Leads, nor any data concerning our clients or applicants. We suggest that you review the policies of your current credit reporting agency as many are now actively promoting the sale of your borrowers data to competing mortgage brokers and lenders. We believe these tactics to be grossly inappropriate, resulting in unsuspecting consumers being deluged with unwelcome solicitations. In many cases your borrowers may receive phone calls to their residence or place of business from other mortgage brokers or lenders who have purchased their information within days of meeting with your loan officer.
To learn more about the TriggerProofTM program, or any Credit Technologies product or service, call 800.445.4922. We’ll be happy to answer any questions you may have.