Bill to Regulate Trigger Leads Progresses in Congress
Despite the controversy surrounding trigger leads, a bill aimed at regulating them has gained momentum in Congress. The legislation, which requires lenders to extend real credit offers, has bipartisan support and is expected to pass by the end of 2025.
The House version of the bill, reintroduced in the 119th Congress, has garnered support from both Democrats and Republicans. Sponsors include Reps. John Rose and Ritchie Torres, as well as Sens. Bill Hagerty and Jack Reed.
The Broker Action Coalition (BAC) has expressed optimism about the bill’s progress but acknowledges that there are still hurdles to overcome. Brendan McKay, owner of McKay Mortgage and chief advocacy officer at BAC, emphasized the need for industry-wide support to ensure the bill’s success.
One key difference between the House and Senate versions of the bill is a directive added during the approval process, requiring a study on the impact of trigger leads delivered via text message. The results of this study are expected within a year of the bill’s enactment.
The Consumer Data Industry Association (CDIA) has advocated for expanding the scope of written credit offers to include mail, email, and text messages from any company that receives a trigger lead. This move aims to provide consumers with more options and protections.
In a letter to House leadership, Mortgage Bankers Association (MBA) senior vice president Bill Killmer expressed support for the bill, highlighting its potential to safeguard consumers from abusive practices in the lending industry.