Mortgage Advocates Gear Up for Trigger Leads Legislation in 2025

The mortgage industry gears up to revive trigger leads legislation in 2025 after a House setback, aiming to limit unsolicited borrower communications.

As 2025 approaches, the spotlight on trigger leads legislation shines brightly within the mortgage sector.

This follows a recent setback where the bill failed to gain approval in the House, even after successfully navigating through the Senate.

Despite this hurdle, key trade associations remain optimistic about the potential for the bill’s revival in the ongoing 119th Congress.

Legislative Journey

Brendan McKay, who heads McKay Mortgage and serves as chief advocacy officer for the Broker Action Coalition (BAC), shared insights on the road ahead.

He acknowledged the slim chances of the House addressing the bill this year, though he didn’t completely rule it out.

Introduced by Senators Jack Reed (D-RI) and Bill Hagerty (R-TN), the legislation sailed through the Senate on Tuesday in its original form.

However, upon its arrival in the House, it was relegated to the suspension calendar, usually reserved for straightforward measures that require a two-thirds majority to pass.

Concerns and Advocacy

The House Financial Services Committee, which Patrick McHenry chairs, raised concerns about the procedural and policy issues surrounding the bill.

These worries echoed previous apprehensions raised when the legislation was stripped from the Senate’s National Defense Authorization Act for Fiscal Year 2025 early in November, particularly regarding attempts to push it through an alternate legislative route.

The Mortgage Bankers Association (MBA) is committed to rallying its coalition partners and congressional allies—93 members from the House and 44 from the Senate—in pursuit of necessary revisions concerning mortgage credit trigger lead policies.

They plan to ramp up advocacy efforts in the year ahead.

Goals of the Legislation

The primary aim of this legislation is to restrict credit reporting agencies from sharing borrower information without prior consent unless the requester is either the original mortgage originator, the current loan servicer, or has a specific banking relationship with the consumer.

This approach seeks to tackle the growing frustration surrounding unsolicited communications, including unwanted phone calls and emails.

Scott Olson, executive director of the Community Home Lenders Association (CHLA), remarked that the next year will be crucial in assessing whether Congress and its affiliated agencies can successfully fend off special interest pressures in favor of broad bipartisan measures, specifically to prevent unsolicited trigger lead solicitations.

In this spirit of optimism, McKay highlighted the importance of the bill’s unanimous passage in the Senate.

He stated that when the time comes to reintroduce the legislation next year, advocates can draw on their previous arguments while also showcasing the bipartisan support the bill has attracted, which could entice additional legislators to co-sponsor the initiative.

While navigating legislation at the federal level often proves challenging, McKay pointed out that the rapid progress achieved this year—transitioning from concept to near-approval—is quite remarkable for the workings of Washington.

Meanwhile, in response to the climate surrounding the legislation, credit bureaus proposed a revised version in November.

This new proposal would allow “written offers” from any entity receiving mortgage leads, while simultaneously imposing stringent restrictions on telemarketing practices.

Source: Housingwire