The Consumer Federation of America joined a letter to Congressional committees supporting the Homebuyers Privacy Protection Act (S. 1467 and H.R. 2808). This important consumer protection legislation, if enacted, would curb the abusive use of mortgage credit “triggers leads” in all but a limited set of circumstances.

Trigger leads occur when a consumer applies for a mortgage (both purchase and refinance loans) and the requisite inquiry to a credit reporting agency (“CRA”) by a lender notifies the CRA that the consumer is interested in home financing. This trigger lead is then sold to data brokers (including other lenders) without the consumer's knowledge or approval. Consumers may then be contacted (by phone, text, or mail) by the other parties that have purchased the trigger leads. Entities that have no relationship with the consumer are buying trigger leads as soon as a customer applies for a mortgage – and then bombarding the applicant with hundreds of confusing calls that seek to lure them away from their chosen lenders.

Six months after the enactment of the bill, trigger leads would be permissible under the FCRA only in limited circumstances during a real estate transaction and only to provide a firm offer of credit.