Credit Bureaus, Trigger Leads, and Spam
When you sign on the line to purchase your new home, a process starts that very few people know about. That process is called a “trigger lead.” A “trigger lead” leads to spam that works to confuse new homeowners in an attempt to worm into your wallet. It works like this.
When your credit is pulled, the credit bureaus put your information up for sale. This is the “trigger lead.”
Before you ask, no, you can’t stop this. The three credit bureaus – Experian, Transnation, and Equifax – hold a monopoly on the credit reporting business. They’ve got deals that allow them to sell your credit info to anyone who will buy.
Yeah. We don’t love it, either.
Mortgage companies buy this credit information.
There are many mortgage companies out there that suck up as much of this information as possible – like a Hoover vacuum duct taped to a fully charged Tesla Model S Plaid with a bad attitude.
Imagine this car with a vacuum attached. That’s serious business.
But why would they want to buy this information? Great question! And the answer is…
These mortgage companies want to sell you a new mortgage.
At first they’ll try to intercept you. Spam calls and emails will ask you to check out their great rates and restart your mortgage application. Then, after you close, they want to snake their way into your wallet for a refinance.
Who are these mortgage companies?
We’re not going to name names, but you’ll know them once you start receiving spam contacts from them. JPAL does NOT purchase these trigger leads from credit bureaus. We don’t like it and we won’t do it. (There’s a reason we’re your best friend in home finance!) We give you the absolute best deal we can right up front so you don’t have to worry.
They will approach you with spam!
This is important. You’ll receive phone calls, texts, email, and mail.
Some companies will straight up ask you to purchase with them or refinance. These are easy to ignore.
After you’ve closed, there are some companies that will pretend to be a customer service agent of your mortgage servicer. They may advise you there’s a problem. If you call them, they’ll continue the charade and work to convince you that you need a refinance for your brand new mortgage loan. Be careful.
Avoid the scammers.
Above all, make sure you’re signed up for the Do Not Call Registry. It doesn’t work 100% of the time, but 40% of the time is better than 0% of the time – all of the time.
Next, ignore the phone calls and advertisements pleading for your business. JPAL is on your side!
If you receive a postcard that says your mortgage loan should be refinanced, be cautious. These folks don’t want to spend a lot of money trying to get that refinance, so they’ll send flimsy, cheap looking requests to you.
Do keep an eye out for envelopes with your mortgage servicers logo on them. These will be legitimate. They will contain information on payments, servicing requirements, updates to policies, and all the other small details that are involved with servicing your mortgage.
Regardless of the ad type, check the fine print. The law abiding companies will have a disclosure that states they are not your mortgage lender. This is a dead giveaway that someone is trying to sell you what you already have: your mortgage.
Finally, if you’re unsure and worried (anxiety is a thing), give your mortgage servicer or your friendly JPAL loan officer a call and ask if they sent the mail.
JPAL Mortgage is here to help!
Moving into your new home should be a happy occasion. It shouldn’t be an unending spam campaign launched by trigger leads from the credit bureaus.
If it’s your first home, your next home, or a vacation home, JPAL Mortgage is here to help you! Contact us today and we’ll help you find a great rate for the house of your dreams.
JPAL Mortgage is a licensed broker in the state of Michigan. NMLS# 2189752 | Equal Housing Opportunity