Strict Standards: Non-static method mosCache::getCache() should not be called statically in /home/marketne/public_html/includes/frontend.php on line 124

Strict Standards: Non-static method modules_html::module2() should not be called statically in /home/marketne/public_html/includes/frontend.php on line 155

Strict Standards: Non-static method modules_html::modoutput_table() should not be called statically in /home/marketne/public_html/includes/frontend.html.php on line 102
Main Menu
Home
News
Contact Us
Search
News Feeds
Articles
Financial News
Real Estate News
Directory

Strict Standards: Non-static method modules_html::module2() should not be called statically in /home/marketne/public_html/includes/frontend.php on line 155

Strict Standards: Non-static method modules_html::modoutput_table() should not be called statically in /home/marketne/public_html/includes/frontend.html.php on line 102
Home arrow Financial News arrow Mortgage News arrow What Triggers Credit Bureau Actions?

Strict Standards: Non-static method mosMainFrame::sessionCookieName() should not be called statically in /home/marketne/public_html/includes/frontend.php on line 33

Strict Standards: Non-static method mosCache::getCache() should not be called statically in /home/marketne/public_html/components/com_content/content.php on line 33

Strict Standards: call_user_func_array() expects parameter 1 to be a valid callback, non-static method HTML_content::show() should not be called statically in /home/marketne/public_html/includes/Cache/Lite/Function.php on line 114

Strict Standards: Non-static method HTML_content::_Itemid() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 434

Strict Standards: Non-static method HTML_content::_linkInfo() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 437

Strict Standards: Non-static method HTML_content::Title() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 452

Strict Standards: Non-static method HTML_content::PdfIcon() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 455

Strict Standards: Non-static method mosHTML::PrintIcon() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 458

Strict Standards: Non-static method mosAdminMenus::ImageCheck() should not be called statically in /home/marketne/public_html/includes/joomla.php on line 2216

Strict Standards: Non-static method HTML_content::EmailIcon() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 461

Strict Standards: Non-static method mosAdminMenus::ImageCheck() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 709
What Triggers Credit Bureau Actions?
Strict Standards: Non-static method HTML_content::EditIcon() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 611
Print E-mail

Strict Standards: Non-static method HTML_content::Section_Category() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 493

Strict Standards: Non-static method HTML_content::Section() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 734

Strict Standards: Non-static method HTML_content::Category() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 737

Strict Standards: Non-static method HTML_content::Author() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 496

Strict Standards: Non-static method HTML_content::CreateDate() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 499

Strict Standards: Non-static method HTML_content::URL() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 502

Strict Standards: Non-static method HTML_content::ModifiedDate() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 518

Strict Standards: Non-static method HTML_content::ReadMore() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 521
Friday, 08 September 2006

Strict Standards: Non-static method HTML_content::TOC() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 508

Have you wondered how every mortgage lender in the world is aware that you have been shopping for a good refinance opportunity?

The answer is credit "triggers," a highly profitable sideline for all of the big three credit collection bureaus, (and business financial analyst Dun & Bradstreet is also a player) although one of them seems to be exploiting their product with great intensity over the last few years.

Lenders (and others, more about this later) can subscribe to a trigger service with one or more credit bureaus. Depending on the parameters that the subscriber chooses, and there are over a dozen to chose from, it will be instantly notified if there are changes in the credit profile of current customers. These triggers may be employed by subscribers as risk alerts, collections assistance, and more recently as marketing opportunities.

A risk alert trigger would be one that indicates that a customer is taking on substantial additional debt or begins to exhibit a pattern of late payments or even of minimum payments on a number of accounts. This is the type of trigger that can result in reduced or even closed credit lines or a sudden increase in interest rates.

Triggers have been available to lenders for years although new technology is morphing them into a totally new type of product, one that can be customized by combining a number of parameters and is available to subscribers nearly instantly. Experian permits a lender to submit a list of names (probably from its current portfolio) to be monitored when for credit shopping or can ask that a list of names (not necessarily existing customers) that match a specified profile be generated on a regular basis. Marketing, risk, and retention triggers are now available on a daily, weekly, up to quarterly cycle.

It is in the marketing area that Experian at least has begun to strongly push its trigger products. While the marketing sector has been around for several years, the sales targets have changed and that could be disconcerting, particularly to the consumer shopping for a mortgage loan.

The credit bureaus have provided trigger service to mortgage servicers for some time; and in the throes of the refinancing frenzy this was a popular product. A servicer wanted to know if a customer was seeking additional credit in order to approach him and try to retain the mortgage business themselves through a refinance or to cross-sell other products such as mortgage insurance or credit cards. As the refinancing boom has waned, however, the credit bureaus are now offering the trigger services to all comers. In other words, they are selling mortgage trigger leads.


In other words, if your mortgage customer is shopping around to refinance, we will alert you so you can take action to retain that business. And we will also notify you if a total stranger who meets your parameters of location, credit score, etc. appears to be seeking financing.

Perhaps the borrower will get a better deal - in the words of the Lending Tree ad - "when banks compete you win." But there are a couple of troubling aspects. First of all, the lender who is initially seeking your business is paying for the credit report that triggers the trigger putting his very own mortgage lead on the open market to be sold as a credit trigger lead for profit to his competitors. Second, it is yet another in the endless examples of how an individual's privacy is ignored every day.

Edward D. Murphy, writing for the Portland Press Herald and Maine Sunday Telegram did an excellent report on this practice in mid-June. He maintains that all three of the big credit bureaus - TransUnion and Equifax in addition to Experian, are selling these kinds of trigger list leads. As stated above, we found only Experian actively marketing the product on line.

The law requires that anyone contacting a consumer from such a lead do so with a firm offer of credit and Experian's website specifies that requirement for lead purchasers. The Edward's article, however, quotes a consumer agency head in Maine as saying the calls to consumers are "more in the nature of fishing expeditions...'tell us what you're looking for and we'll see if we're doing better.'"


Edwina Baniqued

 
Strict Standards: Non-static method HTML_content::Navigation() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 532
< Prev   Next >

Strict Standards: Non-static method mosHTML::CloseButton() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 535

Strict Standards: Non-static method mosHTML::BackButton() should not be called statically in /home/marketne/public_html/components/com_content/content.html.php on line 538