COLUMBUS, Ohio — The Ohio Department of Commerce’s Division of Financial Institutions (DFI) is reminding homebuyers about a common practice in the mortgage industry – trigger leads.
What are Trigger Leads?
Trigger leads are marketing lists generated by credit reporting agencies like Equifax, Experian, and TransUnion. These lists target consumers who have recently taken actions suggesting they may be in the market for a specific product or service.
In the mortgage loan market, trigger leads are particularly prevalent. When a consumer applies for a mortgage and the lender pulls their credit report, this activity triggers an alert to other lenders and insurance companies. These companies can then purchase the consumer’s inquiry data and use it to solicit their services.
Impact on Consumers
According to Pamela Prude-Smithers, Deputy Superintendent for the DFI, “the mortgage industry heavily utilizes trigger leads to target their marketing efforts.” This often results in consumers receiving a barrage of calls from various lenders after applying for a mortgage. While trigger leads themselves don’t affect credit scores, the initial application that triggers them can, as it’s considered a hard inquiry.
Drawbacks and Benefits
While some consumers may find the constant solicitations bothersome, trigger leads can benefit lenders in streamlining marketing efforts. For consumers, this could lead to finding a lender with more competitive rates or loan options.
Opting Out
Consumers can choose to opt-out of receiving pre-screened offers by visiting www.optoutprescreen.com. Additionally, the National Do Not Call Registry allows consumers to limit telemarketing calls at 1-888-567-8888 or online at www.donotcall.gov.