Think mortgage application can feel a bit like the wild west? Well, the long arm of the law might be stretching a bit further in the coming months. A new bill designed to combat trigger leads just passed the House and is expected to pass in the Senate as well. While there’s still some road ahead, the passage of the new law could drastically change the way information is offered following the mortgage application process.
What Are Trigger Leads?
Even if you’ve never heard of trigger leads, you may have still been impacted by them. When you put in a mortgage application, a trigger lead can be generated upon the pulling of your credit report. The leading credit reporting agencies can then sell your information to mortgage lenders who have paid for subscriptions to these services. The result? Your phone starts blowing up with unsolicited calls from mortgage lenders competing for your business. And R.I.P. your email inbox!
But trigger leads are nothing new. In fact, they’ve been a common practice in this country since the 1970s. But as mortgage application volume dives, competition amongst lenders stiffens, and some get desperate. Cue the exploding phones and inboxes. Some applicants don’t mind being courted. Especially since the best mortgage application options are conveniently delivered to them via text and email! But other applicants see trigger leads as an express violation of their privacy. And that’s where the new trigger leads bill comes into play.
Inside the Bill Designed to Combat Trigger Leads
The anti-trigger leads bill would directly amend the Fair Credit Reporting Act (FCRA) to outright ban consumer reporting agencies like Equifax and Experian from offering trigger leads to mortgage lenders. However, there would be two major exceptions.
(1.) Lenders would still be permitted to purchase trigger leads if they hold a pre-existing business relationship with the party filing the mortgage application.
(2.) The party filing the mortgage application can still choose to opt in to receive solicitations through trigger leads.
In this way, power is returned to the applicant. If you find benefit in trigger leads, you can still opt in. Think they’re a hassle? Then the new law would protect you from unsolicited contact.
Bi-Partisan Support for the Bill
The anti-trigger leads bill has generated solid support from both sides of the political aisle. It helps that it was introduced to the House as H.R.2808 by Reps. Ritchie Torres (D-NY) and John Rose (R-TN), and to the Senate as S.1467 by Sens. Bill Hagerty (R-TN) and Jack Reed (D-RI). It’s also received a slew of endorsements from leading trade and consumer organizations, including:
- America’s Credit Unions
- American Bankers Association
- Americans for Financial Reform
- Consumer Federation of America
- Independent Community Bankers (ICBA)
- Mortgage Banker Association (MBA)
- National Consumer Law Center
How Opponents Believe Mortgage Application Suffers Under the Bill
Not everyone is a fan. Opponents to the bill argue that healthy competition is crucial. They fear that a bill designed to curb trigger leads could deprive people going through the mortgage application process of the most competitive rates while simultaneously hurting small lenders. Unsurprisingly, credit bureaus are circling the wagons, preparing to lobby against the bill in hopes of continuing a practice they’ve relied upon for decades.
Why Lawmakers Feel Federal Protections Are Warranted
Several states already have some semblance of an anti-trigger leads law in place. These protections range from clearer disclosures to prominent statements of affiliation. However, California is not one of these states. Therefore, if those going through the mortgage application process want a choice in whether they’re on the receiving end of trigger leads, this federal bill offers the brightest hope.
The Likelihood of this Bill Passing Into Law
The anti-trigger leads law isn’t quite a done deal. While it has passed the House in a unanimous vote, the Senate portion of the bill is still pending. Since a bill like this won’t have an impact on the federal budget, and it’s enjoying strong bipartisan support, it will likely pass into law, granting federal protection and more control to people going through the mortgage application process. So, for credit reporting agencies with itchy trigger fingers, it may be time to fight the impulse.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
