For about the last two years, the mortgage industry has provided personal information to other lenders and partners when a consumer applies for a loan. I know this is shocking. I was just as shocked as you when I found out. As soon as the ink dries on your mortgage application, your information is sold to other lenders. Within a day or two, your phone starts ringing off the hook with calls from other lenders trying to offer you a better deal. This process is called “trigger lead.”
When a mortgage lender or broker pulls your credit report, the lender’s request for your credit report triggers an alert that informs the 3 major credit bureaus, Experian, Equifax, and TransUnion, that you are a potential customer looking to buy. a house or refinance your current one. loan.
Credit bureaus sell these triggers to lenders and brokers who have subscribed to the service and provide them with a list of potential loan applicants who meet the lenders’ criteria for a loan.
Experian has a triggers service called Prospect Triggers that can pull all consumers from Experian’s consumer database who fit a lender’s credit criteria, such as consumers who have never filed for bankruptcy or consumers who have a low credit score. determined credit. Information such as the number of credit cards owned by a consumer and contact information such as the applicant’s name, address and phone number are provided.
I feel this is a violation of privacy. Companies feel that because you include your personal information in an app, they have a right to contact you. I rarely get unsolicited phone calls, but I recently got a call from a telemarketer and asked the caller why do businesses feel they have a right to contact a consumer simply because they have access to a consumer’s contact information? . I also informed the caller that I only give my phone number to people I want to talk to, which does not include telemarketers, and requested that my contact information be removed from their calling list and lists of third-party calls.
Many mortgage industry staffers find activation guides helpful to lenders and brokers. However, I think a customer would get a better deal if they shopped around for multiple deals. When a lender or broker already has some basic information about you, they can develop a plan that works for you, and while the deal may sound good, it may not be the best for you. If you shop around, you have the advantage because you can ask specific questions related to the type of loan you’re looking for and then make a decision about which company you want to do business with without feeling pressured by constant calls from lenders and brokers.
When your credit report is pulled for a lender or broker, you can request that they not enter your phone number, which can reduce calls from telemarketers. However, there are phone comparison programs available that can be used before activation cables are sold. Also, as long as they have your SSN, they can match your name, address, and phone number.
The sad part about this is that credit bureaus provide trigger leads to lenders and brokers and also provide consumers with opt-out services. The credit bureaus make their money up front by selling your information quickly, so by the time you opt out, your information will have been sold many times before enriching them.
Remember when applying for a loan or filling out any application that requests your personal information immediately ask the following questions:
1. What security measures are in place to protect my personal information?
2. How did the company experience security threats or attacks and, if so, how were they handled?
3. What is your privacy policy? Request a copy of the privacy policy or how it can be obtained online.
4. I choose to leave the SSN field blank. Do you have another unique number that can be used to identify me?
5. If I terminate my business relationship with the company, how long is my personal information stored in the company’s database?
6. What is the method to obtain my personal records when I end my business relationship with the company?
7. What procedures are in place to protect customer information if the company goes bankrupt or merges with another company?
To reduce telemarketing calls, register your phone number at http://www.donotcall.gov or call 1-888-567-8688. Shop for comparison at sites like http://www.bankrate.com. Research a company by calling the Better Business Bureau or the Department of Commerce. File a complaint against the company with the Federal Trade Commission or your state Attorney General’s Office if you believe the sales tactics used are unprofessional or misleading.
