Published: March 2024

Legislation would curb abusive “trigger leads”—unwanted home financing offers to mortgage borrowers

Diverse groups signed on to letter supporting the Homebuyers Privacy Protection Act of 2024, which would curb the abusive use of mortgage credit “trigger leads”—the sale of consumer data that results in a bombardment of calls seeking to lure them from their chosen lenders.

Consumer Action joined a diverse group of housing and financial services stakeholders and advocates in a letter to Senators Sherrod Brown (D-OH) and Tim Scott (R-SC) and Representatives Patrick McHenry (R-NC) and Maxine Waters (D-CA) expressing strong support for the Homebuyers Privacy Protection Act of 2024 (S 3502 and HR 7297), bicameral and bipartisan legislation that would curb the use of mortgage credit “trigger leads” in all but limited circumstances. Trigger leads occur when a consumer applies for a purchase mortgage or refinance loan and the requisite inquiry to a credit reporting agency (CRA) by a lender notifies the CRA that the consumer is interested in home financing. This trigger lead is then sold to data brokers (including other lenders) without the consumer's knowledge or approval. Entities that have no relationship with the consumer buy trigger leads as soon as a customer applies for a mortgage and then bombard the applicant with hundreds of confusing calls that seek to lure them away from their chosen lenders. Under the Homebuyers Privacy Protection Act, a CRA would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that it has “originated the current residential mortgage loan of the consumer,” “is the servicer of the current residential mortgage loan of the consumer,” “or is an insured depository institution or insured credit union and holds a current account for the consumer” (or the consumer explicitly consents to such solicitations from other lenders).

Lead Organization

Mortgage Bankers Association

More Information

Read the letter here.

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