We know that it’s annoying and worrisome when your phone rings with unknown callers – especially after you’ve submitted financial information.
Please rest assured that Allied Mortgage Group does not sell you information when you are applying for a loan, all the way through the closing and servicing stages of your loan.
However, when your credit is pulled, the credit bureaus sell records of credit inquiries to the highest bidder. The three credit bureaus are Equifax, Experian, and TransUnion, and one of them will end up pulling your credit (and then placing you on a pre-screened list to sell). These credit bureaus sell leads without any consideration of the borrower’s privacy or the fact that they are already working with a vetted Loan Officer.
Termed a “trigger lead,” (unsavory) lenders buy these credit score leads from credit bureaus because they know that you’re in the market for a mortgage.
Last May, a bill was introduced in the House of Representatives seeking to ban the practice of sending “trigger leads” after consumers initiate a credit inquiry regarding a home mortgage loan. If passed, this bill would prohibit credit reporting agencies from providing a credit report notice to other mortgage lenders when a consumer is seeking a mortgage loan. You can read more about “H.R.7661 – Trigger Leads Abatement Act of 2022 117th Congress” on Congress.gov here. On April 17, 2023, this act was “Referred to the House Committee on Financial Services.”
While reputable lenders are not able to prevent the selling of lead data, often to numerous bidders, we do recommend taking these steps:
- Register with the Do-Not-Call Registry
- Do not opt in to online offers
- Contact the Federal Trade Commission and Congress to report the level and inconvenience of these spam calls
- Stop other forms of direct marketing by “getting off mailing lists”
You know which mortgage company you are “in process” with and can verify their true logos and contact information on materials. We recommend ignoring all calls and mail from any other lenders. Please pay attention to the fine print on mailing materials, as it will show the sender (even if designed to look like your current lender). Watch out for loan terms that look too good to be true and read every word to uncover the actual fees and obligations with the smoke and mirrors offer. Keep in mind that while your phone may be ringing with these unwanted calls, your credit was NOT run again. Only your original lender conducts the hard credit inquiry, and the other companies cannot access your actual credit report or history. We stand by our ethical practices and will ensure your confidentiality.