ICBA, groups urge support for ‘trigger leads’ bill ahead of hearing

ICBA and other groups expressed strong support for bipartisan legislation to help protect the financial privacy of mortgage applicants ahead of a Senate hearing set for today.

The Problem: After consumers apply for a residential mortgage, credit reporting agencies sell their contact information, leading to an influx of solicitations. The current process for a consumer to opt out of these “trigger leads” can be confusing and does not take effect immediately, which can cause consumer confusion.

Legislative Fix: Introduced by Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.) and Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.), the Homebuyers Privacy Protection Act (S. 3502/H.R. 7297) would bar credit reporting agencies from selling consumers’ contact information when they apply for a residential mortgage unless the consumer has opted into the creation and sale of such leads or if certain exceptions apply.

ICBA Advocacy: In a joint letter, the groups urged the leaders of the Senate Banking Committee and House Financial Services Committee to advance the bills as soon as possible. In a previous news release, ICBA said the bill would give consumers more control over their private financial information and shield them from unwanted solicitations.

Hearing Today: Reed and Hagerty will include the legislation as part of today’s Senate Banking Committee hearing on proposals to address housing affordability, availability, and other community needs.

Grassroots Alert: ICBA is calling on community bankers to use its Be Heard grassroots action center to urge their members of Congress to co-sponsor the bipartisan measure.

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