What is pre-screened credit data? Pre-screened credit data comes from the major credit bureaus. It is the data that is used for direct marketing, telemarketing, direct mail, past client monitoring for mortgage credit inquiries, and mortgage trigger leads. Using pre-screened credit data allows you to pre-select and qualify consumers for your offer before you solicit them ensuring only qualified prospects are receiving your offer. Credit data increases response quality and close ratios saving you time and money.
Every company that uses credit data must be set up with each respective bureau so there is a paper trail showing who is using the data and for what purpose the data is being used. The most important thing to keep in mind when using credit data is that you have to follow the guidelines outlined in the Fair Credit Reporting Act (FCRA) set forth by the Federal Trade Commission (FTC) and enforced by the Consumer Financial Protection Bureau (CFPB).
You can find the FCRA guidelines at www.ftc.gov. On their main page in the top right corner you will see a search bar. If you type “FCRA” in the search bar, it will bring up the FCRA guidelines, so you can read, interpret, and stay in compliance with them.
The CFPB is the new watchdog in the industry. Their purpose is to protect consumers from predatory lending and any marketing that may lead to predatory lending. Not only are they overseeing the marketing that you do and the loans that you write, they are also trying to track industry relationships you have that may involve RESPA. They can even regulate the amount of money a lender charges a borrower.
Even with these changes credit data is a viable option for you to use with your marketing. Strict guidelines and oversight means less competition. Those who are using pre-screened data and trigger leads are seeing higher response rates and lower acquisition costs than ever!
TagQuest Inc. Client Spotlight … Jason H., Maryland Mortgage Lender
Each month, we like to talk with our clients and find out how their campaigns are going. Here’s what we heard from one of our mortgage professionals, Jason H., based in Maryland.
Mortgage Insights (monitoring past clients for credit inquiries)
►Past clients being monitored: 2,500
►Match rate in March: 1.8 percent
►Past clients that had their credit pulled by someone else: 45
►Applications taken: 18
►Closed loans: Six (with 12 more in the pipeline … all applications are moving forward)
Highlights of the campaign that worked well for Jason H.:
“As a last line of defense to protect our past clients, knowing when they’ve had their credit pulled for a mortgage is the best time to call”
Highlights that could appeal to other loan officers or offices:
“An inexpensive addition to our follow up and the ROI from it is higher than any other follow up system or marketing campaign.”
Medford, Ore.-based TagQuest is a full-service marketing firm created specifically for the ever-changing business world. TagQuest assists companies with their direct marketing, advertising and branding needs, and knows what it takes to generate quality customers and, most importantly, how to retain those customers for years to come. TagQuest brings forth a unique opportunity to utilize our experience and expertise in varying consumer sales and marketing environments. For more information, call (866) 376-5540 or visit Tagquest.com.
This article originally appeared in the April 2014 edition of National Mortgage Professional Magazine.
- Credit Analyst 3 - Wells Fargo - Minneapolis, MN
- Lending Officer 2 - Wells Fargo - West Des Moines, IA
- Operations Manager/Underwriter - A&D Mortgage - FL
- Call Center Manager - Northeast Credit Union - Portsmouth, United States
- Mortgage Loan Officer - Advantis Credit Union - Hillsboro, OR
- Vice President of Lending - Essential Federal Credit Union - Baton Rouge, LA