A significant step has been taken to protect consumers from the deceptive practices of mortgage trigger leads. Thanks to bipartisan efforts in the Senate, a crucial amendment has been included in the National Defense Authorization Act (NDAA) to ban these harmful tactics.
Mortgage Trigger Leads: A New Era of Consumer Protection
What are Mortgage Trigger Leads?
Mortgage trigger leads are a type of marketing tactic that involves obtaining personal information from homeowners who have recently refinanced their mortgages. This information is then sold to third-party lenders and mortgage brokers who may attempt to persuade homeowners to refinance again, often with less favorable terms.
The NDAA Bill and the Ban on Mortgage Trigger Leads
In a significant victory for consumer protection, the National Defense Authorization Act (NDAA) bill has introduced an amendment that aims to ban the use of mortgage trigger leads. This amendment, supported by bipartisan leadership and cosponsors, seeks to protect homeowners from the aggressive and often deceptive practices associated with these leads.
On September 19th, Senate Armed Services Committee Chairman Jack Reed (D-RI) and Ranking Member Roger Wicker (R-MS) included Senate Amendment 2358, the text of the bill to end the abusive use of mortgage trigger leads (“Homebuyers Privacy Protection Act”), as part of their managers’ amendment to the Senate’s Fiscal Year 2025 National Defense Authorization Act (NDAA).
This is a great first step in NAMB’s effort to pass this critical legislation. Look for more information in the days to come as to the next steps we will be taking.
A Step Towards Greater Consumer Protection
The inclusion of the mortgage trigger lead ban in the NDAA bill represents a major milestone in the ongoing efforts to protect consumers from predatory lending practices. It demonstrates a commitment to ensuring that homeowners can make informed decisions about their finances without being subjected to aggressive and deceptive marketing tactics.
As the NDAA bill progresses through the legislative process, it is important to stay informed about the latest developments and support measures that prioritize consumer protection. By raising awareness about the risks associated with mortgage trigger leads and advocating for stronger regulations, we can help create a more equitable and transparent lending environment for all.
Burke Mortgage Supports Consumer Protection
At Burke Mortgage, we are committed to protecting our clients’ interests and ensuring a positive homebuying experience. We applaud the passage of this important legislation and believe it will have a significant impact on the lives of Connecticut residents.