Reintroduction of the Trigger Leads Bill: A Step Towards Consumer Protection
The ongoing discourse surrounding the regulation of trigger leads has intensified following a recent bipartisan initiative in Congress. According to Bill Killmer, senior vice president for legislative and political affairs at the Mortgage Bankers Association (MBA), “This is what we’ve been waiting for — a chance to have an open and transparent debate about the merits of the bill.”
Background on the Trigger Leads Bill
The trigger leads bill, which aims to regulate how consumer credit information is utilized, previously failed to pass the House at the close of 2024 despite Senate approval. It was reintroduced on April 10 during the 119th Congress as a bipartisan effort, under bills S. 1467 and H.R. 2808, co-sponsored by Senators Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.), alongside Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.).
Consumer Concerns
Consumers have often expressed frustrations over receiving numerous unsolicited communications—calls, texts, and emails—following the submission of mortgage applications. This influx typically occurs when credit bureaus sell borrower information to numerous companies aiming to market their financial products.
Proposed Legislative Changes
A recent iteration of the bill, attached to the 2025 National Defense Authorization Act (NDAA), introduces significant changes. It transitions from an “opt-out” to an “opt-in” model, mandating all forms of solicitation—calls, mail, emails, and texts—be authorized explicitly by consumers. Notably, exceptions apply for solicitations from the consumer’s mortgage originator, servicer, and financial institutions with pre-existing relationships.
Clarifications and Industry Response
This reintroduced version incorporates a key clarification stating that entities utilizing trigger leads must present what is deemed a bona fide or “firm” offer of credit. Killmer asserts, “We’ve always supported making bona fide offers of credit,” indicating a strategic move to curb predatory practices in the industry where some companies masquerade as original lenders.
According to reports, the Consumer Data Industry Association (CDIA) has also been in discussions to modify the bill’s language, suggesting a narrower version that permits written offers through various communication methods from businesses that acquire mortgage leads, with an implementation phase spanning two years.
Anticipated Outcomes
Despite active negotiations surrounding the bill’s details, Killmer conveys optimism about its passage in 2025. If successfully enacted, companies will have six months to comply—a timeline he considers “more than enough.”
Conclusion
The reintroduction of the trigger leads bill marks a crucial step in enhancing consumer protections in the mortgage market. As stakeholders engage in discussions to refine the bill’s provisions, the focus remains on ensuring transparency and safeguarding borrowers from unwanted solicitations.