The Senate yesterday granted unanimous consent to S. 1467, an American Bankers Association-advocated bipartisan bill that would would prevent credit reporting agencies from selling so-called mortgage trigger leads to lenders in most circumstances. Introduced by Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.), the bill is an identical companion to H.R. 2808, which advanced with unanimous support from the House Financial Services Committee earlier this week.
In a memo sent in advance of the House markup, ABA noted that the legislation would “curb the abusive use of mortgage credit ‘trigger leads’ while narrowly preserving them for legitimate, transparent and accountable uses.” When credit reporting agencies alert other lenders to a consumer’s application for credit, “consumers may then be contacted by the other parties that have purchased the trigger leads, leading to invasions of the customer’s privacy and confusion for customers as to how their mortgage application information was shared with other lenders.” The legislation next goes to the House floor.
