|

Rocket Pro To Support Trigger Lead Legislation

By KIMBERLEY HAAS

Leaders at Rocket Pro say they will support legislation that stops the abusive use of mortgage trigger leads.

Trigger leads are generated when a lender pulls a customer’s credit score as they apply for a mortgage. The credit bureaus can sell these leads, and although the mortgage industry is generally united against the practice, they are frequently bought by competing lenders and brokers.

The customers are often contacted by phone, text, or mail by the parties that buy these leads hoping to solicit business. This can lead to confusion as many times customers mistakenly believe it is their lender, and not a credit bureau, who is selling their data.

Last year, Rocket Mortgage joined a diverse coalition of 23 organizations and lenders who supported trigger lead legislation that was approved by the U.S. Senate but ultimately died in the House of Representatives.

Katie Sweeney, who has joined Rocket Pro as executive vice president of strategy and broker advocacy, said during an interview with The Mortgage Note that trigger lead legislation will be one of their primary objectives going into this Congressional session.

In addition to her role at Rocket Pro, Sweeney is a board advisor at Broker Action Coalition. She served as its CEO from January of 2024 until January of this year.

Sweeney said Rocket and the broker community have taken the position that there needs to be better safeguards in place for consumers. She expects that a new bill will be introduced soon.

“If that’s a full ban, that’s great, we’re on board with a full ban. If that requires a handful of exceptions or concessions like the most recent version of the bill in the last Congressional session, that’s okay, too,” Sweeney said. “I think the primary objective is to improve the environment for the consumer. Nobody deserves to have their data sold without them knowing that it’s happening.”

Sweeney said the idea that lenders should be allowed to solicit borrowers looking for mortgages is based on decades-old theories about competition. In today’s digital world, these people are likely aware of the multiple financing options available to them.

“We feel really confident this year. Last year, we were incredibly close to getting a bill moving forward,” Sweeney said. “We think this is the Congressional session to get it done.”

Sweeney said Rocket has an incredible government affairs and policy team in place. She said they do a fantastic job of being true advocates on behalf of the industry, not just for Rocket.

In her role at Rocket Pro, Sweeney said they want to make sure that brokers are included in conversations about legislation that could affect their businesses. She pointed out that legislation often gets drafted without the impact to local originators or small businesses taken into consideration because they’re not heard as often as the larger institutions.

Rocket Pro General Manager Dan Sogorka says this is an example of how they are doubling down and taking bold steps to support brokers.

Sogorka said they can leverage their government connections to make sure the issues that are top of mind for brokers are heard and beneficial solutions are advocated for.

As part of Rocket’s overall rebranding, there will be a new tone set for how the company shows up for both the broader lending and broker community, Sogorka said.

“There’s going to be a different spirit in how we talk and engage with people and I think we’re all really excited about it,” he said.

Sweeney added that they want to offer products, solutions, and processes that help brokers build their businesses.

“The broker channel is a huge component of helping get every consumer into the home of their dreams and we want to empower our partners to do that at scale as much as possible,” she said.

Leaders at the Mortgage Bankers Association, National Association of Home Builders, and National Association of Realtors have also supported legislation that limits the use of trigger leads.