Mortgage brokers applaud progress as House and Senate bills move toward final reconciliation
The US House of Representatives has unanimously passed the Homebuyers Privacy Protection Act (H.R. 2808), moving the mortgage industry closer to banning the "abusive practice’"of trigger leads.
The decision, widely welcomed by mortgage brokers and trade associations, follows the Senate’s approval of a similar measure (S. 1467) earlier this month.
Both bills restrict the use of trigger leads, which occur when credit bureaus sell a borrower’s information immediately after a mortgage credit inquiry. Under the proposed law, credit offers could only be made if the consumer has provided explicit consent, or if the offer comes from their current mortgage originator, servicer, bank, or credit union.
Brokers celebrate
The National Association of Mortgage Brokers (NAMB), one of the bill’s earliest advocates, called the House’s action a ‘major victory’ for both mortgage professionals and consumers.
“NAMB has long advocated for an end to the abusive practice of trigger leads, which undermines consumer privacy and trust,” NAMB president Jim Nabors said in a statement. “We applaud lawmakers for taking decisive action to protect homebuyers. This legislation ensures a fairer, more respectful, and less intrusive mortgage experience for Americans.
Trigger leads have long frustrated both mortgage originators and borrowers, as they often result in a flood of unsolicited offers that confuse consumers and disrupt trusted lending relationships.
“This is a win not just for our industry,” Nabors added, “but for every American seeking the dream of homeownership without the fear of their personal information being exploited.”
Next steps
However, minor differences between the House and Senate versions still need to be reconciled before heading to President Trump’s desk, according to Brendan McKay, chief advocacy officer and co-founder of the Broker Action Coalition (BAC).
“It’s not mission accomplished just yet,” McKay wrote in a LinkedIn post. “But today marks a major step forward. Witnessing tangible progress on a step this significant was incredibly rewarding to me on a personal level and a moment I'll never forget.
“Huge thanks to Congressman Rose (R-TN) and Congressman Torres (D-NY) for leading this effort, and to Mortgage Bankers Association, NAMB - National Association of Mortgage Brokers and every organization that supported the bill. Most of all, thank you to everyone who answered a call-to-action. You helped make this happen.”
Read more: How mortgage firms could pivot amid moves to curb trigger leads
The Mortgage Bankers Association (MBA) also welcomed the legislation.
“After two years of unrelenting advocacy efforts, MBA and its members are more optimistic than ever that the abusive use of mortgage credit trigger leads is close to an end,” said MBA president and CEO Bob Broeksmit.
“MBA will continue to work with the sponsors and congressional leadership in both chambers to reconcile the minor differences between the two bills so that one bill can be passed and signed into law as soon as possible.”
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