“This is a pivotal moment for us to engage in an open and transparent discussion regarding the merits of this bill,” stated Bill Killmer, the senior vice president for legislative and political affairs at the Mortgage Bankers Association (MBA), a key member of a coalition consisting of 17 organizations representing housing and financial services stakeholders and advocates.
Despite gaining Senate approval, the trigger leads bill did not pass the House by the end of 2024. It has been reintroduced in the 119th Congress on April 10 as a bipartisan effort (S. 1467 and H.R. 2808), spearheaded by Senators Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.), as well as Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.).
While trigger leads are legal, consumers often find themselves bombarded with numerous calls, texts, and emails offering credit opportunities. This typically occurs when a consumer’s credit information is shared by a credit bureau with other companies looking to market their services to the consumer.
The version of the bill linked to the 2025 National Defense Authorization Act (NDAA) prohibits all forms of unsolicited solicitations unless explicitly authorized by the consumer, shifting from an “opt-out” to an “opt-in” approach.
This updated version still permits solicitations from a consumer’s mortgage originator and servicer, as well as from insured depository institutions and credit unions with existing consumer relationships.
The revised bill includes a provision mandating that companies utilizing trigger leads must be ready to present a bona fide offer of credit, according to Killmer.
There have been reports of certain industry players engaging in potentially predatory or fraudulent practices by misrepresenting themselves as the original lender while using trigger leads for marketing purposes.
Prior to the bill’s potential enactment, negotiations are ongoing, with Killmer expressing confidence in its passage in 2025. If passed, companies would have six months to comply with the new regulations, a timeline Killmer believes is sufficient.