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Unsolicited Mortgage Offers

Information on the reasons why your mortgage application may trigger competing offers, how you can leverage them to your advantage, and how to discontinue receiving such offers if you wish.

We want you to know these three things:

  1. Union Square is not selling or sharing your information
  2. Other lenders should only have access to your name and phone number
  3. There is something you can do if you want to take action 

Lenders, including mortgage companies, are utilizing a federal statute that enables them to identify potential customers who may benefit from their products and subsequently market to them. The Federal Trade Commission (FTC), the consumer protection agency of the United States, aims to inform you about the reasons why your mortgage application may trigger competing offers, how you can leverage them to your advantage, and how to discontinue receiving such offers if you wish.

The unsolicited communications such as calls, emails, and letters regarding competing offers are commonly referred to as "prescreened" or "pre-approved" credit offers. They are based on the information in your credit report, which suggests that you meet certain criteria established by the offering creditor. These criteria may include factors such as residing in a specific zip code, possessing a certain number of credit cards, or maintaining a specific credit score. Credit bureaus and other consumer reporting companies sell lists of consumers who meet these criteria to insurance companies, lenders, and other creditors.

When you apply for a mortgage, the lender typically obtains a copy of your credit report. This action generates an "inquiry" on your report, indicating that the lender has reviewed it and implying that you are in the market for a loan. Consequently, mortgage companies purchase lists of consumers who have recent inquiries from mortgage companies appearing on their credit reports. This practice is permitted under federal law, provided that the credit offers meet specific legal requirements.

Undoubtedly, certain mortgage companies derive benefits from this practice. However, the FTC asserts that consumers can also benefit from prescreened offers. These offers can bring attention to other available products, making it easier for you to compare costs while diligently scrutinizing the terms and conditions of any offers you may consider.

Nevertheless, some individuals may prefer to cease receiving prescreened offers of credit and insurance altogether. Here's how you can put a stop to them:

- Dial 1-888-5-OPTOUT (1-888-567-8688) or visit optoutprescreen.com. Upon calling this toll-free number or accessing the website, you will be required to provide certain personal information, including your home telephone number, name, Social Security number, and date of birth. The information you provide will remain confidential and will solely be used to process your opt-out request. Refrain from entering any personal details until you have verified the security indicators on the site, such as a lock icon displayed by your browser or a web address beginning with "https."

Opting out of prescreened offers will not affect your ability to apply for credit or obtain it. Your opt-out request will be processed within five days, but it may take up to 60 days before you stop receiving prescreened offers. If you have a joint mortgage, both parties must opt out in order to discontinue the prescreened offers. If you wish to opt back in at any point, use the same telephone number or website.

- Add your phone number to the National Do Not Call Registry, a federal government initiative aimed at reducing telemarketing calls received at home. To register your phone number or acquire information about the registry, visit donotcall.gov or call 1-888-382-1222 using the number you wish to register. Within 31 days of registering your number, you will experience a decrease in telemarketing calls. Your number will remain on the registry for five years, until it is disconnected, or until you choose to remove it.

However, it's important to note that the FTC informs you that many companies employ other methods to identify potential customers for marketing purposes, and the Do Not Call Registry does not shield you from all telemarketers, particularly those with whom you have a business relationship. Even if you opt out of prescreened offers and register your number on the National Do Not Call Registry, you may still receive some unsolicited offers.

For further information regarding the Fair Credit Reporting Act, the legislation that outlines the terms under which companies can access credit reports, refer to the Free Credit Reports resource.

This article is from the Federal Trade Commission Website. https://www.consumer.ftc.gov/articles/how-stop-junk-mail