Great News for Consumers: Trigger Leads are Banned

In a significant win for consumer privacy, the US Senate on August 2 gave unanimous consent to pass HR 2808, the Homebuyers Privacy Act. This legislation will put an end to the sale of trigger leads – a practice that has long annoyed and confused consumers. 

Before the enactment of the Homebuyers Privacy Act, when a borrower applied for a mortgage and their credit was pulled, mortgage companies could buy these leads from the credit bureaus. My clients have told me that they received up to 80 calls from various mortgage companies within 48 hours of their credit being pulled. It was very frustrating and bothersome. This bill will prohibit credit bureaus from selling a consumer’s mortgage-related credit inquiry to competitors without explicit consent.

Once the bill is signed by the President, it will go into effect in six months. So, by the time mortgage interest rates go down enough for all of my clients who bought in the last three years to want to refinance (thinking optimistically!), there will be no more trigger leads to annoy everyone. 

Please contact me if you would like to learn more.