MAA Call to Action: MBA-Supported ‘Trigger Leads’ Bill Introduced; Act Today

Late last week, Rep. John Rose, R-Tenn., introduced H.R. 4198, the Protecting Consumers from Abusive Mortgage Leads Act, which would eliminate abusive trigger leads while preserving their use in appropriately limited circumstances – such as communicating with existing customers.

Congressman Rose’s bill is a new and separate proposal that differs from H.R. 2656, as introduced by Rep. Ritchie Torres, D-N.Y., in April, which would issue a blanket ban on trigger leads. Specifically, H.R. 4198 would allow for prescreen reports (trigger leads) to be permissible under the Fair Credit Reporting Act (FCRA) in limited circumstances during a real estate transaction. A consumer reporting agency would not be allowed to furnish a trigger lead to a third party unless that third party certifies having a consumer’s consent or a current relationship with the consumer.

Why it matters: Eliminating trigger lead abuses while preserving their use in appropriately narrow circumstances is a RESBOG priority (current relationship or consent), and the introduction of this important bill is directly in response to MBA’s ongoing advocacy efforts. In April, attendees at MBA’s National Advocacy Conference participated in over 260 meetings with individual House and Senate offices and explained to lawmakers the potential consumer harm related to trigger leads and companies that use them to misrepresent themselves, attempt to confuse or deceive recent applicants, or inundate them with phone calls or direct mail.

What’s next: Participate in MBA’s Mortgage Action Alliance (MAA) Call to Action today and urge your U.S. Representative to co-sponsor H.R. 4198, the MBA-supported “trigger leads” bill. MBA will continue its ongoing dialogue with Congressman Rose and lawmakers on both sides of the aisle to explore legislative reforms to stop the unwanted harassment of consumers while maintaining an efficiently functioning market.

For more information, contact Bill Killmer at 202-557-2736, Borden Hoskins at 202-557-2712 or Alden Knowlton at 202-557-2741.