After applying for a loan, you may receive unsolicited offers from other lenders due to the credit bureaus’ credit reporting practices.

  • When you apply for a home loan, your lender may submit a credit inquiry to the credit bureaus to check your credit score. The credit bureaus are legally permitted to sell this information as a trigger lead.
  • Other mortgage lenders, brokers, and lead aggregators purchase trigger leads from credit bureaus to access contact information for consumers who are actively seeking specific loan products.
  • Other lenders may contact you in the hours, days, or even weeks after you apply for a loan, using the information made available through the credit bureaus’ trigger leads. 

After applying for a loan, you may suddenly receive multiple phone calls, texts, emails, and/or letters from other lenders, offering similar loan products. This experience surprises many borrowers, but it’s a fairly common practice in the lending industry due to policies outlined in the Fair Credit Reporting Act (FCRA), which allow credit bureaus to create trigger leads.[1]

Understanding what trigger leads are, how they’re generated, and why other lenders might contact you may help you protect your privacy and make more informed decisions during your mortgage process.

Why Other Lenders May Contact You After You Submit a Loan Application

When you apply for a mortgage, your lender may pull your credit report from one or more of the three major credit bureaus: Equifax, Experian, or TransUnion.[2] This inquiry signals that you’re actively in the market for a loan, which is valuable information for other lenders who may want to compete for your business.

Credit bureaus package your basic contact information (within certain legal limits) and sell it as a trigger lead to competing mortgage companies and brokers.[1] A trigger lead is simply a sales lead generated when a consumer’s credit report shows a recent credit-related activity, such as a mortgage application, that “triggers” the interest of competing lenders.

When your credit report indicates that you’re actively shopping for a loan, that information becomes a marketing opportunity for others in the same industry. These other companies may then contact you with offers for rates, terms, or programs they believe could win your business.

You are under no obligation to consider these unsolicited offers.

Common Types of Trigger Events

Several credit-related activities may generate trigger leads, including:

  • Mortgage credit inquiries. When you apply for a mortgage pre-approval, purchase loan, or home loan refinance, your credit check may trigger a lead list for competing mortgage lenders.
  • Home equity products. Credit inquiries for a home equity loan or home equity line of credit (HELOC) may also be sold to other lenders offering similar products.
  • Auto loan applications. In the auto lending world, dealers and lenders use trigger leads to contact consumers shopping for cars.
  • Personal loan applications. A credit inquiry for a personal loan may trigger offers from other lenders in that space.
  • Credit score changes. Some lead buyers request lists when consumers’ credit scores cross a specific threshold, such as moving from “fair” to “good.”

How Trigger Leads Work in the Home Lending Industry

Here is an overview of the process from credit inquiry to trigger lead sale in the mortgage industry:

  1. Your chosen lender pulls your credit. Your lender makes a hard inquiry into your credit report to see how you tend to manage debt as a means of determining your eligibility for a home loan. 
  2. The credit bureau flags the event. The credit bureau’s system notes a mortgage-related inquiry and categorizes it as a potential trigger lead.
  3. The credit bureau matches the event to lead buyer criteria. Other mortgage companies or brokerages subscribe to receive leads that match certain filters, such as location, loan amount, or credit score range.
  4. The bureau delivers the lead. Your information may be provided to those subscribing lenders or lead aggregators, often within hours.
  5. Competing lenders may contact you. These companies may call, text, email, or mail you offers of credit, hoping to beat the rate or terms you’ve been quoted by your chosen lender.

In the mortgage industry, trigger leads may be used by:

  • Mortgage lenders and brokers. They buy trigger leads to connect with borrowers at the exact moment they’re shopping for financing.
  • Credit bureaus. Equifax, Experian, and TransUnion generate and sell the leads.
  • Lead aggregators. Some companies buy large batches of trigger leads from bureaus and then resell them to smaller lenders or marketing firms.

How FCRA Affects Trigger Leads

The FCRA is the federal law that governs how credit information can be collected, shared, and used. Under the FCRA, credit bureaus are allowed to share your information with companies that have a permissible purpose, including offering you credit.[3] The rationale behind allowing the sale of your data for this purpose is to give consumers multiple offers to compare before making a final decision. 

This practice is separate and independent of PNC.

Options for Opting Out of Trigger Leads

The FCRA provides ways to opt out of having your information sold for marketing purposes.[4] By visiting OptOutPrescreen.com, you can remove your name from pre-screened offer lists. You can also add your phone number to the National Do Not Call Registry to reduce telemarketing calls.

Understanding Mortgage Trigger Leads to Protect Your Privacy

If you get a flood of calls, emails, or letters after applying for a mortgage, it’s likely due to trigger leads. While these offers may give you more options, they may also feel overwhelming. Knowing how the process works and how to opt out may help you protect your privacy and focus on the loan process with the lender you trust.

To learn more about how PNC Bank manages the data you provide as part of your loan application, please review our Privacy Policy.