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INFORMATION ON TRIGGERING
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What a trigger isHow triggers came to be
How triggering worksHow companies buy trigger leads
Guard against triggeringRecent industry developments
Agenda
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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.
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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
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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
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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.
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HOW TRIGGERING WORKS
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Customer submits a loan request
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Lender pulls a credit report
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Credit inquiry is identified as a mortgage inquiry
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This inquiry ‘triggers’ an alert that the customer is a hot prospect
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The credit bureau then sells the customer’s name, contact information, and select loan criteria to a third party or another lender
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Your customer’s voicemail, inbox, and mailbox may fill up with competing offers from other mortgage companies.
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HOW COMPANIES BUY TRIGGER LEADS
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EXAMPLE
ABC Mortgage company contacts a company that sells trigger leads
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680-760 FICO $150,000 +
existing mortgage amount
LTV’S of 90% and lower
Mortgage company sets up triggering criteria:
Zip codes 37701-37751
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Millions of homeowners are now being monitored by this service for ABC Mortgage Company
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When mortgage credit is pulled on one of these homeowners, it ‘triggers’ in the system
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ABC Mortgage receives the trigger lead, and calls the customer with an offer.
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HOW TO GUARD AGAINST CREDIT TRIGGERING
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#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
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#2 OPT OUT BY MAIL
www.optoutprescreen.com By signing and mailing in the form, stops trigger leads permanently
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#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
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How to prepare your customers
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Give them printed
information
Warn them they may get phone
callsAdvise them the offers may be ‘too good to be true’
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Recent Industry Developments
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There has been no success in the private litigation attempts to stop trigger leads to date, leaving the
practice alive and well.
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DATA FACTS DOES NOT AND WILL NEVER ENGAGE IN ANY SORT OF TRIGGER PROGRAM, AND NEVER SELLS CONSUMER INFORMATION!
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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]
Follow us on Twitter: www.twitter.com/dfmtgsolutionsSubscribe to our Blog: www.datafactsmortgage.wordpress.com