December 2024
Understanding Trigger Leads and How They Can Affect You as a New Homeowner
Recently purchased or refinanced a home with a new mortgage? Congratulations! Whether it's your first home, a forever home, or a refinance to better suit your financial needs, it’s a significant milestone. While this time is exciting, it's important to be aware of a less-discussed issue that comes with closing on a new mortgage: the influx of unsolicited mail.
When you close on a new mortgage, your property address, name, and loan amount become part of the public record. Many people are familiar with receiving the previous owner's mail, but not everyone realizes how much (often deceptive) mail starts flooding your mailbox. This is due to what are known as “trigger leads”—a marketing tactic used by “companies” to target new homeowners.
What are Trigger Leads and How Do They Happen?
Trigger leads are generated when lenders, like your loan officer, report your mortgage details to credit bureaus. These leads are then sold to third-party companies who use them to send unsolicited offers. These offers often appear to be from your mortgage lender or financial institution, but they are not. In fact, they could be part of a scam designed to steal your personal information or funds.
You may receive offers that seem legitimate, containing your loan amount, loan number, property address, and even the name of your lender. They often urge you to take immediate action with phrases like "IMMEDIATE RESPONSE REQUIRED" or "EXTREMELY URGENT" or “IMPORTANT NOTICE.” While these communications may seem legitimate, they are often deceptive.
Red Flags to Watch Out For
There are key indicators that can help you identify fraudulent mailings. Be cautious if the following signs appear:
- Missing logos or unclear branding
- Misspelled or shortened versions of your lender, mortgage company, or financial institution’s name
- Inaccurate loan or identification numbers
- A phone number with an (800) or (800) prefix
- Brightly colored paper such as yellow or pink, designed to grab your attention
- A tiny disclaimer buried at the bottom, stating that the mailing is “not affiliated with your current mortgage holder” or “not endorsed by your current lender.”
These deceptive mailings are often designed to confuse and pressure you into acting quickly, making it easy for scammers to gain access to your personal or financial information.
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What CNB St. Louis Bank Is Doing to Protect You
At CNB St. Louis Bank, we want to ensure our customers and potential customers are aware of the dangers of these unsolicited offers. Even if they reference our name or other personal details, rest assured they are not legitimate communications from us. We will never contact you via postal mail asking for urgent responses related to your loan.
Kristen Henson, a recent CNB St. Louis Bank customer who purchased her first home, shared her experience:
“When I first started looking for a home, I was in a tough situation and needed someone who could help me quickly. Throughout the process, my loan officer and his team were always available to answer any questions and concerns. I could reach out by email, call, or even text, and they would respond promptly, within the hour. When they needed something from me, they always reached out personally via phone or email, never through USPS mail.”
Our Consumer Banking Officers advise their clients, including Kristen, to be aware of the spam and junk mail that follows the closing process. “When you close on a mortgage, all your information becomes public record, and scammers will use that to target you. If we need something from you, we will reach out personally—whether by phone, email, or your preferred method of contact. Don’t respond to unsolicited mail or phone calls,” Chris Giles, Consumer Banking Officer stated.
How to Protect Yourself
As a new homeowner, it’s important to be vigilant. If you receive unsolicited offers, verify the source before taking any action or call your trusted Banking Officer. Trust that CNB will always communicate with you directly, using your preferred method of contact, if any action is required. And, most importantly, never provide sensitive information over the phone, through email, or by mail unless you are certain communication is legitimate.
At CNB St. Louis Bank, we pride ourselves on our community involvement and commitment to helping our customers every step of the way. Your home and your financial security are important to us, and we will always be here to guide you through any questions or concerns.