NAMB And Other Trade Groups Support Amending The FCRA To Ban Credit Bureaus From Selling Trigger Leads
The National Association of Mortgage Brokers (NAMB) has announced it support legislation that would ban trigger leads. The NAMB is a trade group that represents the interests of individual mortgage loan originators and small to midsize mortgage businesses.
HR 2656 would amend the Fair Credit Reporting Act to prohibit the creation and sale of trigger leads. Representative Richie Torres of New York introduced the bill on April 17, 2023.
Trigger lead takes place when a consumer applies for a mortgage. The LO or his processor sends an inquiry to the credit bureaus. The LO’s inquiry sets off a trigger that notifies the credit bureaus that the client is looking for financing. The credit bureaus then sell the trigger lead to competing mortgage companies. Of course, this is all done without the consumer’s knowledge or approval.
The leads consist of names, contact information and other data. This data also includes a significant amount of personal information.
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