triggering information for mortgage professionals

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 INCsusan@datafacts.com865-567-1095

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