Bipartisan legislation would stop abuse use of mortgage trigger

Together with other trade associations, America’s Credit Unions offered support for legislation to curb the abusive use of mortgage credit “trigger leads” in all but a limited set of circumstances. The bicameral, bipartisan Homebuyers Privacy Protection Act (S. 1467 and H.R. 2808) was introduced by Sens. Bill Hagerty, R-Tenn., and Jack Reed, D-R.I., and Reps. John Rose, R-Tenn., and Ritchie Torres, D-N.Y. 

The joint letter sent Wednesday to Senate Banking and House Financial Services Committees leaders explained how trigger leads—which occur when a consumer applies for a mortgage and their information is sold to data broker—often generate a bombardment of confusing calls that seek to lure consumers away from their chosen lenders.  

“Six months after the enactment of the bill, trigger leads would be permissible under the FCRA only in limited circumstances during a real estate transaction and only to provide a firm offer of credit,” wrote the group.  

In addition, a credit reporting agency (CRA) would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that either:  

• the consumer explicitly consents to such solicitations;
• it has originated the current residential mortgage loan of the consumer;  
• it is the servicer of the current residential mortgage loan of the consumer; or  
• it is an insured depository institution or insured credit union and holds a current account for the consumer.

America’s Credit Unions supported similar legislation last Congress, which had passed the Senate by unanimous consent.