House passes abusive trigger leads ban

The U.S. House of Representatives unanimously passed the Homebuyers Privacy Protection Act (H.R. 2808) late Monday, bringing a national ban on abusive trigger leads one step closer to reality. The move was widely applauded by mortgage trade groups.

The House’s action follows the U.S. Senate’s approval of a similar bill (S. 1467) on June 13. Both bills prohibit companies from making credit offers unless the consumer has provided explicit consent or the offer comes from their mortgage originator, servicer, depository institution or credit union with an existing relationship.

However, offers must be “bona fide,” meaning the lender must be prepared to extend real credit. Under the bill, trigger leads would still be permissible in these limited cases under the Fair Credit Reporting Act, beginning six months after enactment. A final rule is expected by the end of 2025.

The House version — reintroduced in the 119th Congress in April — has bipartisan, bicameral support. Its sponsors include Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.), along with Sens. Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.).

The Broker Action Coalition (BAC) said it was “thrilled” that the bill cleared another hurdle, but emphasized that “we are not across the finish line yet.”

“A technical difference between the House and Senate versions still needs to be reconciled,” said Brendan McKay, owner of McKay Mortgage and chief advocacy officer at the BAC. “We need the entire weight of the industry behind this legislation until it crosses the finish line.”

McKay is referring to a directive added to the House version during approval by the Financial Services Committee, which requires the Comptroller General to study the impact of trigger leads delivered by text message. The findings are due within 12 months of the bill’s enactment.

The Consumer Data Industry Association (CDIA) has advocated for allowing written credit offers via mail, email or text from any company that receives a trigger lead, not just those with an existing consumer relationship, HousingWire reported.

In a letter to House leadership on Monday, Mortgage Bankers Association (MBA) senior vice president of legislative and political affairs, Bill Killmer, wrote that the trade group “believes that H.R. 2808, as amended in the Financial Services Committee on June 10, preserves the core language and key provisions of the bill.” 

According to Killmer, the bill, “if enacted, would protect consumers from abusive, sometimes predatory practices.”