NAMB Applauds Congressional Lawmakers for Advancing H.R.7661 the Trigger Leads Abatement Act of 2022, Ending Dangerous Trigger Leads
New legislation will protect consumers by ending the practice of mortgage application data being sold to parties not associated with mortgage transactions
WASHINGTON, May 9, 2022 /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.7661 Trigger Leads Abatement Act of 2022 To amend the Fair Credit Reporting Act to prohibit the creation and sale of trigger leads.
This legislation will end the dangerous practice of trigger leads which hurts consumers and damages the overall mortgage marketplace. H.R.7661 - Trigger Leads Abatement Act of 2022 was introduced by Representative Richie Torres of New York; which was referred to the Committee on Financial Services.
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.7661, the Trigger Leads Abatement Act of 2022 will 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).
"We applaud Representative Torres and his congressional colleagues for introducing H.R.7661, the Trigger Leads Abatement Act of 2022 that will deliver much needed relief to the mortgage marketplace by ending the dangerous practice of trigger leads," said Linda McCoy, NAMB President. "NAMB is honored to have worked to support members of congress on this critical legislation and today we celebrate the efforts made by so many across the nation to end this terrible practice that will no longer place undue strain on consumers, mortgage professionals and the entire marketplace."
H.R.7661, the Trigger Leads Abatement Act of 2022 will 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 believes contacting the consumer during the complex mortgage process is harmful and confusing and opens up the possibility of fraud and unfair 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 members include independent mortgage brokers, loan originators, and small businesses. 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 910,000* licensed and registered Mortgage Loan Originators and 39,000* licensed mortgage broker and mortgage lender businesses. The Association hosts several meetings throughout the year. Engage the organization via social media: https://www.facebook.com/NAMBPros
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Joshua Steinfeld, Steinfeld Consulting, 1 (339) 225-1581, [email protected]
SOURCE Steinfeld Consulting
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