Imagine this scenario: You were recently in pursuit of the best mortgage rates or submitted an online application for a home loan, and now your phone is buzzing incessantly. Your email inbox is overflowing with messages from lenders vying for your attention. You simply wanted to explore the interest rate on that charming bungalow, but now you find yourself inundated with unsolicited communication. How did all these companies manage to obtain your contact information?

One likely explanation, as highlighted by Fred Winchar, co-founder and CEO of MaxCash, a financial brokerage connecting users with lenders, is that your data may have been sold by a credit bureau. When you apply for a loan with a mortgage company, they typically pull your credit record to assess your creditworthiness. As a result, the credit bureau obtains a record of this credit inquiry, which they subsequently sell to other mortgage companies as potential leads.

"This information informs other mortgage companies that you are actively searching for a mortgage, prompting them to reach out to you in an attempt to secure your business," explains Winchar.

In case you were curious, credit bureaus are indeed allowed to sell your information to lenders and insurers, who can then inundate you with unsolicited credit or insurance offers through "prescreening offers." Fortunately, you can opt out of these offers, as advised by the Federal Trade Commission. Here's how:

Opting Out for Five Years: You can visit or call 1-888-5-OPT-OUT (1-888-567-8688). Both the phone number and the website are managed by the major credit bureaus.

Opting Out Permanently: Visit or call 1-888-5-OPT-OUT (1-888-567-8688) to initiate the process. To complete your request, you'll need to sign and return the Permanent Opt-Out Election form, which you can obtain online after starting the process.

Another likely scenario, according to financial planner Jeff Rose, CFP, and the founder of, is that when you apply for a mortgage, your application enters various databases or networks associated with the initial company. Some companies may also sell or share lead information with other lenders, particularly if they are unable to service your loan, resulting in multiple companies reaching out to you.

Feel free to reach out to Scott and the Smolen Team at anytime so they can connect you with a reputable, local lender that can discuss your mortgage options with you privately!