Read more: Mortgage trigger lead reform bill gets second chance in Congress
The coalition also emphasized that the burden of opting out falls entirely on the borrower, who must notify the CRA and wait five business days for the opt-out to take effect, which then lasts for five years. During that window, borrower data remains eligible for sale.
If passed, the bill would significantly narrow when and how trigger leads can be sold.
The coalition said the legislation “would stop the abusive use of trigger leads – while narrowly preserving them for legitimate, transparent, and accountable uses.”
The joint letter was signed by the following organizations: Mortgage Bankers Association, National Association of Mortgage Brokers, NATIONAL ASSOCIATION OF REALTORS, National Association of Home Builders, American Bankers Association, Independent Community Bankers of America, America’s Credit Unions, Consumer Federation of America, National Consumer Law Center (on behalf of low-income clients), Center for Responsible Lending, Broker Action Coalition, Leading Builders of America, National Housing Conference, Community Home Lenders of America, CONSUMER ACTION, Housing Policy Council, and the USPIRG.