Potential homebuyers are one big step closer to being protected against unwanted calls and messages.
The U.S. House of Representatives voted to approve on H.R. 2808, the bipartisan Homebuyers Privacy Protection Act which targets “trigger leads,” a term for when credit reporting agencies sell prospective homebuyers’ contact info to third-party mortgage brokers, lenders and other businesses following a credit check.
After discussing the bill for 11 minutes, it was approved by a voice vote with no audible opposition.
This follows the Senate’s unanimous passage of a nearly-identical bill, S. 1467, on June 12. There are very slight differences between the bills, so there will need to be final pieces polished before final approval and it gets sent for President Trump’s signature.
The bipartisan bill was introduced by Rep. John Rose, R-Tenn., and Rep. Ritchie Torres, D-N.Y.
Rep. Torres’s office sent this statement on the bill’s passage to Scotsman Guide: “Today the House took a decisive step to protect consumers from predatory practices by passing the bill I’m co-leading with Congressman John Rose to ban trigger leads. No American should have their personal financial data weaponized against them the moment they apply for a mortgage. This bill puts power back in the hands of homebuyers and stops the harassment before it starts. I’m proud to continue fighting for privacy, dignity, and a fairer housing market — and I look forward to getting this across the finish line.”
During the debate, there was no opposition — only some discussion of how it points for the need for further legislation on consumer protection and data privacy.
Rep. Brad Sherman, D-Calif., also recognized the efforts of former Missouri Congressman Lacy Clay, who had worked on a less restrictive version of a bill to curb abusive leads in 2020.
The Mortgage Bankers Association was quick to applaud the passage of the bill, with MBA’s President and CEO Bob Broeksmit calling it “another important step forward in our fight to provide relief for consumers who face a torrent of unwanted emails, texts, and phone calls the moment they apply for a mortgage.”
A variety of industry organizations supported passage of the bill. Among those called out by Rep. Rose was the Broker Action Coalition (BAC), which has been working to encourage mortgage industry professionals and consumers to lobby their legislators to pass this bill.
Brendan McKay, BAC chief advocacy officer and co-founder, attended the session. While excited about its passage, he cautioned the passage by the House does not mean its advocates can claim victory. “It’s a major milestone, but not ‘Mission Accomplished’ just yet,” McKay said.
McKay added that the effort on a personal level was a bit overwhelming. “I’ve poured a lot of time, energy and emotion into this legislation, and witnessing a tangible act of progress that significant is incredibly rewarding.”
The Independent Community Bankers of America also praised the passage in a statement immediately following the vote.
“ICBA and the nation’s community bankers applaud the House and Senate for swiftly passing their versions of the Homebuyers Privacy Protection Act, which will give consumers more control over their private financial information and shield them from unwanted solicitations,” ICBA President and CEO Rebeca Romero Rainey said. “We look forward to final passage of this important bipartisan legislation to restrict the sale of trigger leads and support the privacy of U.S. consumers.”
Scotsman Guide contacted the three major credit reporting agencies, asking if they had any statement on the bill. As of publication time, neither Equifax, Experian or TransUnion have responded.
