Rumblings that Congress may be considering excluding language banning the use of “trigger leads” by creditors is causing some concern among industry advocates.
In September, mortgage lenders were pleased over news that key provisions of the Homebuyers Privacy Protection Act (S. 3502) would be included in the National Defense Authorization Act (NDAA) for Fiscal Year 2025 under Senate Amendment 2358.
However, recent indications about Congress’s efforts to streamline the NDAA could include eliminating provisions addressing trigger leads. The Community Home Lenders of America (CHLA) released a statement in light of such discussions.
“Any legislative compromise regarding trigger leads which allows texts, emails, phone calls, or any live offers to borrowers is unacceptable and will not end abusive trigger lead solicitations,” CHLA Director of External Affairs Rob Zimmer said in a statement. “Without discernable action, consumers will continue to be harassed by automated solicitations that they do not want. Consumer privacy must be top of mind as our policymakers decide the final language of the bill. Moreover, any prohibitions should take place no later than six months after bill passage.”
Legislation outlawing the use of trigger leads to identify potential loan customers has been expressly supported by numerous other industry advocacy groups, including the Mortgage Bankers Association, the National Association of Mortgage Brokers, the Broker Action Coalition, and the Independent Community Bankers of America.