New Legislation would protect consumers by ending the practice of mortgage application data being sold to parties not associated with mortgage transactions
WASHINGTON, Dec. 14, 2023 /PRNewswire-PRWeb/ — The National Association of Mortgage Brokers (NAMB), the voice of the mortgage industry representing the interests of mortgage professionals and home buyers for the past 50-years announces its support of Senator Bill Hagerty and Senator Jack Reed’s recently introduced trigger leads legislation; the Homebuyers’ Privacy Protection Act (S.3502) in the U.S. Senate.
The Homebuyers’ Privacy Protection Act (S.3502) would end the dangerous practice of trigger leads which hurts consumers and damages the overall mortgage marketplace.
Trigger leads occur when a consumer applies for a mortgage, and the inquiry to credit by the lender is a trigger that notifies the credit bureau that the consumer is interested in applying for financing. Trigger leads are then sold by the credit bureaus to data brokers (including other lenders) without the consumer’s knowledge or approval.
Consumers are then often bombarded with hundreds of calls that confuse consumers and seek to lure them away from their chosen lenders.
The Homebuyers’ Privacy Protection Act (S.3502) will prohibit a consumer reporting agency from furnishing a trigger lead unless the third party certifies to the consumer reporting agency that the third party has a current relationship with the consumer. The bill is tailored to give consumers more control over the information they receive as part of the homebuying process and eliminates trigger lead abuses while preserving their use in appropriately limited circumstances.
“NAMB is honored to continue working with members of Congress on the Homebuyers’ Privacy Protection Act as this critical legislation will help many people across the nation to end this terrible practice that places undue hardships on consumers, mortgage professionals and the entire marketplace,” said NAMB President Valerie Saunders.
“NAMB and its members have been working on this issue for the past three congresses. We are encouraged by the expanded interest in this issue by Senators Reed and Hagerty as well as members of the House of Representatives,” added Saunders.
The National Association of Mortgage Brokers has been the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973. NAMB provides mortgage professionals with advocacy, education, and rigorous certification programs to recognize members with the highest levels of professional knowledge and education. NAMB’s active lobbying and advocacy efforts focus on national and state issues, protecting the interests of its members and borrowers. As the leading national trade association for the mortgage industry, NAMB is affiliated with state associations throughout the country and represents the interests of more than 993,000 licensed and registered Mortgage Loan Originators and 68,000 licensed Mortgage Broker and Mortgage Lender businesses throughout the US. The Association hosts several meetings throughout the year. Engage the organization via social media: https://www.facebook.com/NAMBPros
Media Contact
Joshua Steinfeld, Steinfeld Consulting, 1 339-225-1581, steinfeldconsulting@gmail.com
SOURCE National Association of Mortgage Brokers
