T
he US Senate has passed the bipartisan Homebuyers Privacy Protection Act, a significant step towards stronger consumer protection in the mortgage process. Introduced by Sens. Jack Reed and Bill Hagerty, the bill aims to restrict the practice of selling "trigger leads," which allows lenders to sell mortgage credit inquiries without consumers' knowledge or consent.

    Trigger leads are generated when a consumer applies for a mortgage, prompting a lender to make a credit inquiry with a consumer reporting agency (CRA). This information is then sold to third parties, including other lenders and data brokers, resulting in unsolicited calls, texts, and emails from competing lenders. Consumers often believe their agent or broker has sold their data, leading to confusion and frustration.

    The Homebuyers Privacy Protection Act would tighten the rules on trigger leads, restricting their use to specific scenarios such as active real estate transactions with genuine firm offers of credit. If signed into law, the act would severely limit the mass sale of mortgage inquiries without applicants' permission.

    The National Association of REALTORS consistently advocates for policies that protect home buyers throughout the mortgage process. NAR executive vice president Shannon McGahn says, "We strongly support this legislation and have advocated for measures that enhance transparency, consumer control, and privacy in the mortgage process."