Lately we’ve been hearing a lot about trigger leads because of the laws trying to ban them.
If you don’t know, if a lender pulls your credit, the credit bureaus will happily sell your information to competing banks and lenders letting them know you’re buying a mortgage.
The result is being bombarded with phone calls and text messages with offers to use them instead.
They have yet to be phased out, because agencies like the CFPB actually want consumers to comparison shop more. And this is one way to enforce it.
Even if you haven’t applied for a loan recently, homeowners (myself included) have received legitimate-looking emails from their existing bank or loan officer.
What in the World Is an Abbreviation for Dividend Savings?
Recently, I received a “Money Savings Summary” in the mail (which I’m glad I opened so I could share it with you).
First of all, I have never heard this phrase in my life, but I believe that some version of it is used by mortgage lenders to solicit homeowners.
Your bottom line is that you have “equal savings” that can affect when you call the number in the notification.
My specific letter listed my old lender’s name (they didn’t know my loan was transferred to a new one I think), my property address, and the notional amount of equity available for purchase.
It also includes an unauthorized file ID number and a phone number for a customer support center with hours listed, but strangely there is no physical location.
It also said, “Please keep a copy of this notice for your records.”
Of course.
Is This Official Notice Or Official Nonsense?
Basically, companies that send these forms do their best to make it look like a legitimate notice. And that you NEED to respond as if it is urgent or mandatory.
In fact, it’s just a redistribution offer masquerading as a legitimate-looking notice.
Now there is nothing wrong with sending a refund offer by mail. I receive all kinds of junk mail for many products every day. That’s just life.
The problem is when what appears to be an official notice is actually just an advertisement.
It’s not until you actually study the fine print that you realize it’s from a foreign mortgage lender.
The lender in question is one I have never heard of. Also, it’s good that they advertise.
But if it doesn’t look like an ad and instead looks like a referral from my loan servicer, it feels like a scam.
Home loans are complicated enough, so we don’t need more confusion.
People just don’t understand things like loan servicing, where the company that originated your loan sells it to another company to collect monthly payments.
Or how one employee can transfer your loan to a new employee. This also happens very often!
So when companies start making silly reports like this, there’s a chance for more misunderstandings.
And then you have to ask yourself if you want to work with a lender this way.
Always Read the Fine Print to Find Out What Really Happens
If you take the time to read these terms, make sure you get down to the fine print section. You may need to take out the reading glasses.
If you read it, you will quickly find out that it is an offer to refinance the mortgage.
And apart from the sample (low) 5.75% loan rate listed, it noted that all offers will have different terms.
In addition, it indicated that it was from a third-party lender, not authorized or affiliated with my current lender.
With the disclosure that your actual rate and payment may vary based on X, Y, Z, blah blah blah.
And finally, that all the information here was obtained from public records.
So unfortunately, if you’re a homeowner, a lot of your information is out there for businesses to ask for.
That’s all well and good, but companies need to be upfront and honest.
Personally, I would like a prospective mortgage lender to be transparent when they make an offer.
But I get it, these notices are likely to attract attention and may result in a better conversion rate for the lenders who send them.
Let this be a warning. The next time you receive an official notification, it may be an advertisement.
And as I always say, if a lender reaches out to you, reach out to other lenders.
As the CFPB says, get multiple quotes instead of just going with the first one you hear or see.
Especially if they include a line that says you need to call by a certain date for them to complete your “review”.
Before creating this site, I worked as an account manager for a real estate broker in Los Angeles. My experiences in the early 2000s inspired me to start writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the mortgage process. Follow me on Twitter for the latest.
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