Trigger Leads Bill Back In Congress With Industry Support

A version of last year’s failed trigger leads bill has been reintroduced in Congress, with support from major players in the mortgage space.

The Homebuyer’s Privacy Protection Act made its way back to the House and Senate after failing to pass the House last December.

It aims to stop credit reporting agencies from selling consumers’ contact information to third parties after a credit check, known as “trigger leads.”

“It is not unusual for bank customers to receive 100+ misleading texts, phone calls and emails within the first 24 hours of applying for a mortgage and the passage of this bill will go a long way in relieving this burden to homebuyers,” National Association of Mortgage Brokers president Jim Nabors said of the bill, according to Financial Regulation News. NAMB supports the legislation.

In the Senate, Sen. Jack Reed, D-RI, is cosponsoring the bipartisan bill with Tennessee Republican Bill Hagerty, while Rep. John Rose, R-TN, and Rep. Ritchie Torres, D-NY, head it up in the House.

MBA president Bob Broeksmit commended the legislators for bringing the bill back after its previous failure.

“MBA has worked closely with industry stakeholders and a large, bipartisan group of lawmakers in the House and Senate to push for action that ends the abusive use of mortgage credit leads,” he said in a statement. “Consumers remain vulnerable to trigger leads abuses, and we believe strongly that this common-sense legislation will curb the practice while preserving its value in appropriately limited circumstances.”

Last year, the bill was packaged with the National Defense Authorization Act, but Patrick McHenry, the chairman of the House Committee on Financial Services, wanted it to move forward on its own. He retired in January.

In an interview with Scotsman Guide, Nabors said that the new chairman, French Hill (R-AR), supports the bill, and NAMB is confident it will move forward this time around.

“Right now, trigger leads, which is affecting too many people, is NAMB’s No. 1 project,” Nabors said.

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