The National Association of Mortgage Brokers (NAMB) represents the professional interests of mortgage professionals and homebuyers. Over the past three decades, NAMB has taken a strong stand against the practice of trigger leads. The fight continues as NAMB lobbies for legislation to end the practice.
Trigger leads happen when a potential borrower applies for a mortgage. The application serves as a “trigger” that notifies the three credit bureaus—Equifax, Experian, and TransUnion—that the borrower has applied for financing. Then, the credit bureaus may sell the borrower’s data to lenders without their knowledge or approval.
In 1970, the Fair Credit Reporting Act (FCRA) allowed the practice. However, NAMB believes in fair competition in the marketplace and that borrowers should have the freedom to choose the best mortgage for themselves. Therefore, NAMB is calling for the amendment of FCRA, among others.
NAMB has constantly pushed for legislation that will, at least, modify the practice of trigger leads. In 2017, the House introduced a bill but did not pass the Committee on Financial Services. Another failed attempt occurred during the 2021-2022 congressional session.
Nonetheless, NAMB continues its pursuit. The Senate introduced a bill in December. NAMB strongly supports the bill, the Homebuyers’ Privacy Protection Acts (S.B. 3502). It seeks to give borrowers more control of the information they provide when buying a home.
