In a move to protect consumers from intrusive practices in the mortgage industry, U.S. Representative John Rose (TN-06) has introduced the “Protecting Consumers from Abusive Mortgage Leads Act.” This legislation, proposed on June 16, 2023, aims to ban trigger leads, except in specific and limited circumstances.

Trigger leads are generated when a consumer applies for a mortgage, triggering an inquiry to their credit by the lender. Subsequently, these leads are sold by credit bureaus to data brokers, including other lenders, without the consumer’s knowledge or consent. The result is often an onslaught of unsolicited calls attempting to divert consumers from their chosen lenders, causing confusion and frustration.

Rep. Rose’s bill takes a stand against this practice by prohibiting consumer reporting agencies from providing trigger leads unless the third party certifies that they have a current relationship with the consumer. The legislation seeks to empower consumers by giving them more control over the information they receive during the homebuying process while eliminating abuses associated with trigger leads.

“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,” stated Rep. Rose. “My bill would put an end to this shady and confusing practice and restore data privacy for homebuyers.”

Colin Barrett, President and CEO of the Tennessee Bankers Association, emphasized the importance of the legislation in preserving Tennesseans’ privacy rights, citing instances where individuals receive numerous misleading texts, calls, and emails within the first 24 hours of applying for a mortgage.

The Mortgage Bankers Association also commended Rep. John Rose for introducing this legislation. Bill Killmer, Executive Vice President Legislative and Political Affairs for the Mortgage Bankers Association, expressed support for the bill’s ability to protect consumers by curbing inappropriate use of credit trigger leads while preserving existing real estate customer relationships.

Amidst the evolving mortgage market, individuals seeking up-to-date information can turn to Mike Stoy with Epic Mortgage, a seasoned expert who can provide valuable insights to navigate the ever-changing landscape of mortgage regulations and practices.

As the legislation makes its way through the legislative process, it addresses concerns about the unwanted harassment of consumers and aims to maintain an efficiently functioning mortgage market that prioritizes consumer privacy.