Mortgage triggering is the process that some lenders use to gain customers.
Basically, lenders purchase these 'trigger leads' from the bureaus or other companies. The leads are consumers who have recently had their credit pulled in order to qualify to buy a home. Once purchased, the lenders call these consumers, (who could be YOUR customers) and extend them a firm offer of credit.
This process is covered by the FCRA as a legal practice. (FCRA, 15 U.S.C 1681). The wording of the language is: 'to obtain a consumer's private information an institution must have consent OR present a firm offer of credit in their solicitation'. So, when lenders buy these leads, they must call, email, or mail a firm offer of credit to the consumer.
The argument for triggering is that is gives consumers a choice. Triggering offers consumers more than one option for a mortgage loan.
The argument against triggering is that unscrupulous loan officers may make 'too good to be true' statements, or run a bait and switch scheme using the consumers' information.
Through the years, Data Facts has answered this question many times. Customers are confused and frustrated by the sometimes multiple phone calls they receive from competing lenders. They feel their private information has been sold. And it has.
How customers are triggered: lenders set up their criteria based on the credit score, LTV ratio of the loan, and even the geographic area of consumers they wish to target. Once set up, the consumers that fit these criteria are monitored by the triggering company. When a consumer that is on this list has their credit pulled for a mortgage loan, this triggers in the system. The lender then receives this information, and calls the consumer with an offer.
From DataFacts
This is very frustrating for us and our customers. I think (and I hope you do to) that it should not be allowed. Tell your congress person. You can reach me at 615-777-4663 or via email at george.margrave@migonline.com
No comments:
Post a Comment