NAMB Applauds Congressional Lawmakers for Advancing H.R.2656, Legislation Designed to End the Use of Trigger Leads

New legislation would protect consumers by ending the practice of mortgage application data being sold to parties not associated with mortgage transactions

WASHINGTON, April 18, 2023 /PRNewswire-PRWeb/ -- The National Association of Mortgage Brokers (NAMB), the voice of the mortgage industry representing the interests of mortgage professionals and home buyers since 1973, is pleased to place its full support behind H.R. 2656 which would amend the Fair Credit Reporting Act to prohibit the creation and sale of trigger leads, and for other purposes.

This legislation would end the dangerous practice of trigger leads which hurts consumers and damages the overall mortgage marketplace. H.R.2656 was introduced by Representative Ritchie Torres of New York on April 17, 2023.

What is a "trigger lead"? They take place when a consumer applies for a mortgage, either a purchase or refinance transaction, the inquiry to credit by a mortgage company is a trigger that notifies the credit bureau that the consumer is interested in applying for financing. This "trigger lead" is then sold by the credit bureau to data brokers including competing mortgage companies without the consumer's knowledge or approval. Consumers may then be contacted by these competing companies who have purchased the "trigger leads" which creates confusion for the borrower and may prompt them to send personal information they may not have otherwise intended to share.

H.R. 2656, would ensure that no consumer reporting agency may furnish a consumer report in connection with a credit transaction that is not initiated by a consumer, if the report is being procured based in whole or in part on the presence of an inquiry made in connection with a residential mortgage loan (as defined under section 103 of the Truth in Lending Act (15 U.S.C. 1602).

"NAMB is grateful for the hard work of Representative Torres and the 118th Congress for introducing H.R.2656, that would deliver long needed relief to consumers and the mortgage marketplace by ending the dangerous practice of trigger leads," said NAMB President Ernest Jones Jr. "NAMB is honored to have worked with members of congress on this critical legislation and today we hope these efforts will help many people across the nation to end this terrible practice that places undue hardships on consumers, mortgage professionals and the entire marketplace."

H.R.2656 would protect consumers when applying for a mortgage as this new legislation will protect personal information from being made public information as the consumer needs to be given more control over their personal information. NAMB firmly believes contacting the consumer during the complex mortgage process is harmful and confusing and opens up the possibility of fraudulent behaviors and deceptive activity.

About NAMB:
The National Association of Mortgage Brokers has been the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973. NAMB provides mortgage professionals with advocacy, education, and rigorous certification programs to recognize members with the highest levels of professional knowledge and education. NAMB's active lobbying and advocacy efforts focus on national and state issues, protecting the interests of its members and borrowers. As the leading national trade association for the mortgage industry, NAMB is affiliated with state associations throughout the country and represents the interests of more than 993,000 licensed and registered Mortgage Loan Originators and 68,000 licensed Mortgage Broker and Mortgage Lender businesses throughout the US. The Association hosts several meetings throughout the year. Engage the organization via social media: https://www.facebook.com/NAMBPros

Media Contact

Joshua Steinfeld, Steinfeld Consulting, 1 339-225-1581, [email protected]

SOURCE National Association of Mortgage Brokers