Mortgage Leads
Mortgage leads operate on a fairly simple principle. Mortgage leads providers attempt to connect consumers interested in mortgages with lenders who are seeking customers. Mortgage leads come from a variety of sources, from customer-authorized "matching" services to sales of consumer information by a third party. Mortgage leads provide a valuable customer base for newer and smaller lenders, and can be quite beneficial to consumers who benefit from lender competition. However, some consumers are less than pleased about their personal information being shared without their knowledge.
Avoiding Unwanted Mortgage Leads
The best way for consumers to protect themselves is to be extremely
careful about giving out personal information. While many mortgage brokers
are ethical and go out of their way to protect consumer data, others are
less scrupulous. Some brokers collect personal information and then sell it
to a variety of lenders in the form of mortgage leads.
However, credit bureaus also commonly sell consumer data. If you apply for a mortgage, the lender will run a credit check. This credit check can tip off the credit bureau that you are interested in a mortgage. The credit bureau may then sell your information as part of a list of possible mortgage leads.
To guard against unwanted mortgage leads, become proactive about avoiding telemarketers. Sign up for the national Do Not Call Registry. Contact the Direct Mail Association and request that your name be removed. Also sign up for OptOut Prescreen, which prevents credit bureaus from selling your information.
Taking Advantage of Mortgage Leads
Mortgage leads are not always bad for the consumer, however. There are
advantages to having a number of companies compete for your business. Not
all companies are scrupulous, so it is important to be cautious.
Never agree to anything over the phone. Ask for the company name and a callback number. After you get off the phone, take the time to research the company. If you get a good feeling about the prospect, then call back and ask for information in writing.
Remember that if a deal seems too good to be true, it probably is. Never allow yourself to be sucked in by a smooth talking salesperson. Likewise, a legitimate mortgage offer will not expire quickly. Say no to any high-pressure tactics such as a "limited time offer."
The Bottom Line
Mortgage leads can be valuable to both lenders and borrowers. However,
care must be taken to ensure your own protection. Take the time to research
any prospective offer and back away from high-pressure sales tactics. With
a bit of caution, you may find that mortgage leads actually benefit
you.
