CCBN Applauds New Law Restricting Intrusive Mortgage ‘Trigger Leads’

The California Community Banking Network applauded President Trump for signing the bipartisan Homebuyers Privacy Protection Act into law, which will help protect the financial privacy of mortgage applicants.

H.R. 2808, The Homebuyers Privacy Protection Act, introduced in Congress by Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.) and Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.), and endorsed by the CCBN, will restrict credit reporting agencies from selling consumers’ contact information when they apply for a residential mortgage. These “trigger leads” result in a deluge of solicitations for prospective homebuyers, leading to hassles and confusion for consumers.

“CCBN joins community bankers from California in thanking the administration and our leaders in Congress for passing this important law, which provides additional consumer protections, mitigating potential scams and harmful sales tactics,” said CCBN President and CEO Laurie Eaton.“Thanks to this bipartisan effort consumers will now have more control over their private financial details and will be shielded from incessant solicitation as they apply for a mortgage.”

Prior to this law, when a consumer applied for a mortgage, credit bureaus could sell their information as a “trigger lead,” instantly alerting competing lenders. Borrowers received phone calls, texts and mailers from other companies, creating confusion about which lender they were working with.

Polling from the Independent Community Bankers of America (ICBA) conducted by Morning Consult demonstrates public support for this policy change, with 63% of surveyed U.S. adults in favor of preventing credit reporting agencies from sharing or selling consumers’ contact information to other companies when they apply for a home mortgage loan.