I have had many clients ask me why they have been getting so many solicitations for a mortgage after they have just applied.
There is a reason: Trigger Leads.
As part of the application process your credit report was ordered. While this is an essential piece of your approval process, it automatically generates an inquiry with all three national credit bureaus – Experian®, TransUnion® and Equifax®. As a result, you may receive unsolicited mortgage loan offers (via phone and/or written correspondence) from companies other than Knight Financial.
While we take the privacy of our clients very seriously and do not sell any information to other companies, the national bureaus are legally able to sell what are called “Pre-Screen” lists, which lenders can purchase for marketing purposes.
This means that your phone will ring more and your junk mail will increase. But be smarter than the average bear. It is a solicitation. Which means that they are probably baiting you with some promises they can't deliver. So OPT OUT! If you would like to opt out of random companies purchasing your information, go to www.optoutprescreen.com or call 888-567-8688. The website has a wealth of information.
Quick Hits:
• This practice, as well as these types of offers, is permitted under the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.
• Your personal credit file was NOT sold to anyone as part of this process. Creditors purchasing these lists receive only your name and address, and possibly your phone number.
• This process did not impact your credit file or credit score in any way.
• Go to www.optoutprescreen.com or call 888-567-8688 to stop receiving these types of solicitations.
