The recent introduction of a new bill in the U.S. House of Representatives could lead to the end of trigger leads, and one of the country’s top mortgage groups is fully behind the legislation.
H.R. 7661, also known as the Trigger Leads Abatement Act of 2022, was introduced in the House by Rep. Ritchie Torres, D-New York, and was referred last week to the House committee on financial services. If codified into law, it would prohibit the creation and sale of trigger leads, which occur when a borrower applies for a mortgage. The inquiry to credit by a mortgage company is a trigger that notifies credit bureaus that the borrower has shown interest in applying for financing. The lead is then sold by the bureau to data brokers, which may include rival mortgage companies, and occurs without the knowledge or consent of the consumers.
According to the National Association of Mortgage Brokers (NAMB), competing companies may then reach out to these borrowers, which creates confusion and may prompt the borrower to pass along personal information that they may not have otherwise intended to share.
“We applaud Representative Torres and his congressional colleagues for introducing H.R. 7661, the Trigger Leads Abatement Act of 2022, that will deliver much-needed relief to the mortgage marketplace by ending the dangerous practice of trigger leads,” NAMB president Linda McCoy said.
“NAMB is honored to have worked to support members of Congress on this critical legislation, and today we celebrate the efforts made by so many across the nation to end this terrible practice that will no longer place undue strain on consumers, mortgage professionals and the entire marketplace.”