Trigger leads may bedevil some originators, but a little extra work can defend against losing clients to this type of chaotic competition.
Sean Rogerson, branch manager for Equity Loans in Southbury, Connecticut, said the practice - which sees a soft-pull of a borrower's credit score trigger a credit bureau to on-sell the borrower's information to a large network of competing mortgage originators - is wrong in essence.
“It’s kind of like backstabbing,” he said.
On the other hand, Rogerson noted, he rarely loses a client to a trigger lead. Rogerson conceded that the practice manages “to keep the world competitive,” and said he is even considering using trigger leads for his new branch operation.
Luckily, it’s pretty hard to lose a customer to a trigger lead, said Craig Dodds, national sales manager for Amersave Mortgage Corporation in Atlanta, Georgia. The key to keeping a client is having a strong, competitive package ready.
A falling interest rate environment should worry primary originators, Dodds added. This is one instance where clients are likely to find a more competitive package just one trigger-led call away.
What do you think about trigger leads? Dirty tricks, or fair game? Have your say in the comments below.