Senate Passes House Version of Trigger Leads Bill

As previously reported, both the House and Senate passed bills to ban “trigger leads,” except in limited circumstances, although the versions of the bills that were previously passed are slightly different. The one difference is that the House-passed version calls for a Government Accountability Office study on the value of trigger leads by text message.

By unanimous consent, the Senate has now passed the House version of the legislation, which is entitled the Homebuyers Privacy Protection Act (H.R. 2808). The legislation now moves to President Trump for his signature.

We have addressed the trigger leads bills earlier, including here.

As provided in the legislation, a creditor will be able to obtain a trigger lead from a consumer reporting agency only if:

1. The creditor makes a firm offer of credit to the consumer, and
2. The creditor submits documentation to the agency certifying that the creditor:
   • Has the authorization of the consumer to obtain a consumer report on the consumer;
   • Originated the consumer’s current residential mortgage loan;
   • Services the consumer’s current residential mortgage loan; or
   • Is an insured depository institution or credit union and holds a current account for the consumer.

In a press release Bob Broeksmit, President and CEO of the Mortgage Bankers Association (“MBA”), addressing the passage of the legislation by the Senate, stated:

“MBA celebrates the final passage of this important bill — a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads.

This new law will help protect consumers from the barrage of unwanted calls, texts, and emails they too often receive immediately after applying for a mortgage. It marks a major victory for borrowers and will create a more efficient, responsible, and respectful home buying process.”