Triggered leads aka mortgage inquiry data is a relatively new marketing tool for the rank and file mortgage company. Until recently the credit bureaus had imposed ridiculous monthly minimums and restrictions of use that made them out of reach for all about the Argent's, Ameriquest's and New Century's of the world.
In a nutshell you create a demographic profile of the credit universe you want the bureaus to monitor ( for ex. 530-640 FICO, $10K+ in revolving debt, LTV's of 80 and below, mortgage open dates between 6/03 - 1/05, State of CA, FL, MI, NJ)
When someone in that geography, with those demographics applies for a mortgage, a mortgage inquiry is triggered at the bureau level. This info can then be purchased in a 24-48 hour window from the inquiry being posted and then used as a mortgage lead.
Think about it - EVERY SINGLE ONE OF THESE HOMEOWNERS IS IN THE MARKET NOW!!!! It is a very potent source for finding those borrowers that are in the market right now.
The KEY to making these work is timing...you have to talk/communicate with them as soon as possible. By and large, most consumers will compare and contrast terms,deal structure, closing costs, etc when offered a no risk comparison to a deal that has been offered to them from another lender. Conforming borrowers ( especially those above 720 FICO's know they can go anywhere and they will shop you til the morning of closing for a fraction of a point less or a couple of hundred less in closing costs.
Subprime borrowers on the other hand are "need based" borrowers. Rate and term are less important to them. They want to know "how much cash out can I get, how much is my monthly payment, how quickly can I get my check, etc...the long term costs are much less relevant for the needs based borrower. Subprime borrowers generally tend to stop shopping once someone has approved them. That's why speed to contact using triggers in critical.
Direct Mail for trigger data in my opinion is a much less desirable method of contact for 2 reasons. First, since time is of the essence - overnight or
2nd day mail is used (Big Bucks here)...secondly, it's direct mail...the conversion yield for direct mail is still small compared to direct contact by phone.
There is a right way and wrong way to buy these leads and you must understand that with any live credit data, a firm offer of commitment must be made. An approved FCRA compliant script must be used for telemarketing to this lead type and if you are mailing to them, you need to include the necessary and required Opt Out disclaimers as well as the "approved offer language".
If you want more info on these leads or information on who has the best pricing on them please visit
www.LeadsBid.com or email me directly at
bidchief@leadsbid.com
I'll be glad to point you in the right direction.
The Bid Chief
