I received this information from a good friend of mine (Scott at Pinnacle Mortgage) last week. It has also been independently confirmed from another finance professional that I know. Good information for all...and for all of us to pass on to our clients.
Here's a reality check. You sit down with your Trusted Mortgage Lender on Monday morning. Your lender pulls your credit report and you sign your loan application, confident in the knowledge that your lender has your best interests at heart. By the next morning the three national Credit Reporting Agencies have compiled a list of the previous days credit inquiries specific to mortgages.
That list is called a 'Mortgage Trigger List,' and is sold to lead generation companies before the end of the day. Consumers may then get a flurry of calls from other lenders trying to steal the loan. The lender you sat down with the day before did not sell your information, but it is now out there for unscrupulous lenders to use. This process is called 'Prescreening,' and is unfortunately not illegal.
There is a way to opt out. Consumers can opt out of being included in target trigger lists for 5 years or permanently by calling 1-800-5-OPTOUT (1-888-567-8688) or by visiting www.optoutprescreen.com. Credit Reporting Agencies have 5 days to process a consumers request to opt out, so your trusted lender may advise that it is prudent to wait 5 days to pull your credit report and help protect your privacy. This may also help reduce unwanted junk mail that is also triggered by these lists.
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