Bipartisan Legislation Protects Homebuyers from Unwanted Contact

Strategic Insights -

The Homebuyers Privacy Protection Act has been signed into law by President Trump, prohibiting lenders from inundating homebuyers with unsolicited calls, texts, and emails. The legislation, introduced by Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.), aims to restrict the practice of selling mortgage credit "trigger leads." This practice involves generating leads when a consumer applies for a mortgage, prompting lenders to make credit inquiries with consumer reporting agencies. The National Association of Realtors strongly supported this legislation, citing the need for transparency, consumer control, and privacy in the mortgage process.

Key Takeaways:

  • The Homebuyers Privacy Protection Act prohibits lenders from making unsolicited contact with homebuyers offering loan deals, aiming to restrict the practice of selling mortgage credit "trigger leads."
  • Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.) introduced the bill, which was supported by the National Association of Realtors.
  • The National Association of Realtors executive vice president and chief advocacy officer, Shannon McGahn, stated that this legislation is a win for transparency, consumer control, and privacy in the mortgage process.
  • The bill was also supported by a bipartisan coalition in Congress and received companion legislation in the Senate from Senators Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.).
  • NAR previously joined several organizations in a letter of support for the bill to the House Financial Services Committee, led by French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.).

Statistics:

  • The Homebuyers Privacy Protection Act aims to prevent lenders from making over 1 million unsolicited contact attempts annually.
  • Trigger leads are generated when a consumer applies for a mortgage, prompting a lender to make a credit inquiry with a consumer reporting agency.
  • 72% of Americans support automatic opt-out from mortgage triggers (National Association of Realtors).

Sources:

  • National Association of Realtors press release, [date not provided]
  • H.R. 2808, the Homebuyers Privacy Protection Act
  • Letter of support from NAR and other organizations to the House Financial Services Committee, [date not provided]