Your Mortgage Application May Trigger Competing Offers

When you apply for a mortgage, you may find yourself inundated with unsolicited offers from various creditors. This influx of offers is due to a federal law that allows creditors to access certain information about you, enabling them to identify potential customers and market their products. Here’s a breakdown of why this happens and how you can manage these offers.

Why You Receive Competing Offers

1. Prescreened Offers: These offers, sometimes called "pre-approved" or "prescreened," are based on information from your credit report. Credit bureaus sell lists of consumers who meet certain criteria, such as having a specific credit score or residing in a certain area, to lenders and other creditors.

2. Credit Report Inquiry: When you apply for a mortgage, the lender reviews your credit report. This action creates an "inquiry" on your report, signaling that you’re seeking a loan. Mortgage companies and other creditors often purchase lists of consumers with recent inquiries to target them with offers.

Benefits of Receiving Prescreened Offers

• Comparison Shopping: These offers can help you discover additional mortgage products and rates, allowing you to compare different options and potentially find better terms.

• Informed Decisions: Receiving multiple offers gives you a broader perspective on available products and helps you make a more informed decision.

How to Stop Receiving Prescreened Offers

If you prefer not to receive these unsolicited offers, you can opt out:

1. Opt-Out Process:

   • Call: Dial 1-888-5-OPTOUT (1-888-567-8688).

   • Provide Information: You will need to provide personal information, including your home telephone number, name, Social Security number, and date of birth. This information is used solely for processing your opt-out request and remains confidential.

   • Processing Time: Your request will be processed within five days, but it may take up to 60 days for the offers to stop completely.

   • Joint Mortgages: Both parties involved in a joint mortgage should opt out separately to stop the offers.

2. Re-Opt-In: If you wish to start receiving prescreened offers again, you can use the same telephone number to opt back in.

Additional Measures to Reduce Unsolicited Offers

1. National Do Not Call Registry:

   • Register: Call 1-888-382-1222 from the phone number you wish to register.

   • Duration: Your number will be on the registry for five years, unless you disconnect it or remove it.

   • Effectiveness: This will reduce telemarketing calls, but won’t stop all unsolicited calls, especially from companies with which you have a business relationship.

2. Limitations: Even with opting out of prescreened offers and registering with the Do Not Call Registry, you may still receive some unsolicited offers.

By understanding these processes, you can better manage the influx of mortgage-related offers and take control of your marketing preferences.