Understanding Trigger Leads

Trigger leads are a controversial practice in the mortgage industry, often referred to as “bottom feeders.” When lenders like Indigo Mortgage pull a credit report for a prospective borrower, credit bureaus immediately sell that borrower’s information to third-party lenders. This results in an overwhelming influx of calls, emails, and texts from these companies, attempting to lure borrowers away from their chosen lender.

Recent Developments in Legislation

Until now, there has been no law prohibiting credit bureaus from selling your personal information. However, the National Association of Mortgage Brokers has announced exciting news: an amendment addressing the controversial use of trigger leads has been included in the National Defense Authorization Act. This amendment is a significant step forward in regulating the practice of trigger leads.

Advocating for Consumer Choice

A couple of key senators have championed this important legislation. At Indigo Mortgage, we believe that while competition can be beneficial for consumers, it’s essential that borrowers have the right to choose who they want to work with. If this amendment is passed, it will ensure that borrowers’ personal data isn’t sold without their consent, putting the power back in the hands of the consumer.

Consumer Privacy

The potential passage of this law represents a major victory for borrowers, aiming to protect their privacy and reduce the unwanted solicitation from “bottom feeders” that are not reputable mortgage lenders. At Indigo Mortgage, we’ve served homeowners since 2003. Stay tuned for further updates as we monitor this important legislation!