Legislation aimed at prohibiting the use of “trigger leads” involving the sale of consumer credit information to solicit lending services to homebuyers moved a step closer to becoming law on June 23.
The House passed the Homebuyers Privacy Protection Act (H.R. 2808) by voice vote with an amendment that did not appear in the Senate version, which passed on June 12.
The amendment addresses the use of digital marketing messages to solicit consumers identified through trigger leads and was included in the final, reconciled bill to be submitted to the president to be signed into law. Specifically, it would commission a study by the Government Accountability Office on the value of trigger leads received via text message. The findings would need to be reported within a year of the bill’s enactment.
Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit issued a statement celebrating the bill’s passage, which came following “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,” Broeksmit said.
He further characterized the bill’s passage as “another important step forward in our fight to provide relief for consumers who face a torrent of unwanted emails, texts, and phone calls the moment they apply for a mortgage.”
Broeksmit had urged both chambers to act swiftly in reconciling the two bills after the Senate voted to approve its unamended version.
The House bill was sponsored by Rep. John Rose (R-Tenn.) and Rep. Ritchie Torres (D-N.Y.), who have been strong congressional advocates behind multiple legislative actions seeking to prohibit the use of trigger leads.