Today, U.S. Rep. John Rose (TN-06) introduced the Homebuyers Privacy Protection Act with Rep. Ritchie Torres (D-NY-15), which would expand on his work to ban trigger leads except in limited circumstances.
When a consumer applies for a mortgage, credit bureaus are notified that the consumer is interested in financing, which is referred to as a trigger lead. That information is then sold by the credit bureaus to data brokers (including other lenders) without the consumer’s knowledge or approval. Consumers are then often bombarded with hundreds of calls that confuse consumers and seek to lure them away from their chosen lenders.
Rep. Rose’s bill prohibits a consumer reporting agency from furnishing a trigger lead unless an individual chooses to opt-in. In that case, only certain approved groups will be notified that an individual is seeking a new mortgage. The bill is tailored to give consumers more control over the information they receive as part of the homebuying process and eliminates trigger lead abuses while preserving their use in appropriately limited circumstances.
“Buying a home is stressful enough for many consumers. The last thing most folks want is to be annoyed incessantly by the constant barrage of emails, text messages, and phone calls after they apply for a mortgage,” said Rep. Rose. “My bill would put an end to this shady and confusing practice and restore data privacy for homebuyers.”
This bill is supported by a broad coalition of financial trades and consumer groups, including the Independent Community Bankers Association, Mortgage Bankers Association, National Association of Mortgage Bankers, American Bankers Association, and the Broker Action Coalition.
Senator Hagerty (R-TN) and Senator Reed (D-RI) have also introduced S.3052, a companion bill, in the Senate.
Read the full text of the Homebuyers Privacy Protection Act here.