Mortgage brokers work hard to establish trust with clients, guiding them through the home financing process with expertise and care. However, one persistent industry challenge threatens both borrower experience and broker-client relationships: trigger leads.
What Are Trigger Leads?
Trigger leads are generated when a borrower applies for a mortgage and their credit is pulled. Credit bureaus then sell this data to lenders and brokers, allowing them to target these borrowers with competing offers — often bombarding them with unsolicited calls and emails. While some argue that this practice promotes competition, most in the mortgage industry see it as harmful.
Why Are Trigger Leads a Problem?
Brokers and mortgage trade groups have long pushed for a ban on trigger leads, citing several key concerns:
- Consumer Harassment: Borrowers are often overwhelmed by an influx of unsolicited calls, leading to confusion and frustration.
- Bait-and-Switch Tactics: Some lenders use misleading offers to entice borrowers, only to change terms later.
- Compromised Broker Relationships: Brokers invest time in building trust with clients, only to have competing lenders attempt to poach them using data they paid to access.
Industry Efforts to Ban Trigger Leads
The mortgage industry has actively lobbied Congress to restrict the sale of trigger leads. A bipartisan bill, The Homebuyers Privacy Protection Act, aimed to require consumer consent before their data could be sold. While it gained strong support last year, it ultimately failed to pass. Now, industry leaders are working to reintroduce legislation, with growing optimism that it will gain traction.
How Brokers Can Protect Their Clients
Until a ban is in place, brokers can take proactive steps to shield clients from trigger lead harassment:
- Educate Clients Early: Inform borrowers that they may receive unsolicited offers after applying for a mortgage and advise them to be cautious.
- Encourage Opt-Outs: Clients can preemptively opt out of prescreened credit offers at optoutprescreen.com, reducing the chances of being targeted.
- Strengthen Client Relationships: Maintain consistent communication to reassure borrowers and reinforce your value as their trusted advisor.
The Path Forward
The fight against trigger leads is far from over, but mortgage trade groups remain committed to pushing for legislative change. In the meantime, brokers can stay informed, advocate for their clients, and take steps to minimize the impact of this controversial practice.
At First Priority Processing, we support brokers by providing expert loan processing services that enhance efficiency and client satisfaction. If you’re looking for a trusted partner to help streamline your operations, contact us today.
