triggering information for mortgage professionals
TRANSCRIPT
INFORMATION ON TRIGGERING
What a trigger isHow triggers came to be
How triggering worksHow companies buy trigger leads
Guard against triggeringRecent industry developments
Agenda
A Trigger Is…
A ‘prescreened” offer of credit based on information in your credit report that suggests you meet criteria set by the creditor making an offer.
A federal law (FCRA, 15 U.S.C 1681) allows creditors to identify potential customers for the products they offer, and then market to them.
HOW TRIGGERS CAME TO BE
HOW TRIGGERS CAME TO BETo obtain a consumer’s private information an institution must have consent OR present a ‘firm offer of credit or insurance’ in their solicitation
TWO ARGUMENTS
FOR• Triggering encourages
competition and allows consumers to better compare loan offers
AGAINST• Receiving these calls can
feel like harassment, and can potentially turn into a scam.
HOW TRIGGERING WORKS
Customer submits a loan request
Lender pulls a credit report
Credit inquiry is identified as a mortgage inquiry
This inquiry ‘triggers’ an alert that the customer is a hot prospect
The credit bureau then sells the customer’s name, contact information, and select loan criteria to a third party or another lender
Your customer’s voicemail, inbox, and mailbox may fill up with competing offers from other mortgage companies.
HOW COMPANIES BUY TRIGGER LEADS
EXAMPLE
ABC Mortgage company contacts a company that sells trigger leads
680-760 FICO $150,000 +
existing mortgage amount
LTV’S of 90% and lower
Mortgage company sets up triggering criteria:
Zip codes 37701-37751
Millions of homeowners are now being monitored by this service for ABC Mortgage Company
When mortgage credit is pulled on one of these homeowners, it ‘triggers’ in the system
ABC Mortgage receives the trigger lead, and calls the customer with an offer.
HOW TO GUARD AGAINST CREDIT TRIGGERING
#1: OPT OUT OF PRE-SCREENED OFFERS
www.optoutprescreen.comCall 1-888-5-OPTOUT
Stops trigger leads for 5 years
Becomes effective within 5 days
#2 OPT OUT BY MAIL
www.optoutprescreen.com By signing and mailing in the form, stops trigger leads permanently
#3: PUT YOUR PHONE NUMBER ON THE DO NOT CALL REGISTRY
www.donotcall.govCall 888-382-1222 from
the phone number you want to register
Due to the Do Not Call Improvement Act of 2007, number stays on list permanently
How to prepare your customers
Give them printed
information
Warn them they may get phone
callsAdvise them the offers may be ‘too good to be true’
Recent Industry Developments
There has been no success in the private litigation attempts to stop trigger leads to date, leaving the
practice alive and well.
DATA FACTS DOES NOT AND WILL NEVER ENGAGE IN ANY SORT OF TRIGGER PROGRAM, AND NEVER SELLS CONSUMER INFORMATION!
THANK YOU FOR ATTENDING!
REFERENCED INFORMATION
www.getsmart.comwww.ftc.govwww.homebuying.about.comwww.mortgagetriggers.com/trigger-leadswww.mortgagetriggerleads.netwww.namb.orgwww.courthousenews.com
SUSAN MCCULLAHProduct DevelopmentDATA FACTS [email protected]
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