Rep. Torres seeks to ban mortgage ‘trigger tracks’

A New York congressman is seeking to ban a practice he says endangers people looking to buy a home.

Bronx Democrat Ritchie Torres introduced legislation banning so-called “trigger tracks” for residential mortgages.


What do you want to know

  • Rep. Ritchie Torres introduced legislation banning so-called “trigger tracks” for residential mortgages
  • What is a trigger track? After applying for a mortgage, an applicant’s information may be sold by credit bureaus to other lenders. These lenders can then offer other offers
  • In a statement, a spokesperson for the industry trade organization representing the credit bureaus said: “Lenders who make timely offers of credit can maximize consumer choices when they have the most. need”

Trigger leads work like this: After applying for a mortgage, an applicant’s information can be sold by credit bureaus to other lenders. These lenders can then offer other offers. Prospects can cause unsolicited calls, texts and emails.

Some say these are helpful for consumers, giving them a better idea of ​​their options, possibly including better rates. But others fear they lead to consumer manipulation.

“The reality of trigger leads is that they often lead to more identity theft, fraud and predatory lending,” said Torres, who introduced his bill earlier this month.

This is not the first time that this type of legislation has been launched. Another Democrat introduced a similar bill in the last Congress.

While that bill hasn’t advanced out of committee, Torres is undeterred.

“We need to ask ourselves a simple question: should companies have the right to share your personal information, without your knowledge and consent? Torres said.

Linda McCoy, chair of the board of the National Mortgage Brokers Association, is also worried about trigger leads.

McCoy, owner of Mortgage Team 1 in Mobile, Alabama, said he received many calls and texts after going to refinance last fall.

Because she works in the mortgage industry, most of these calls didn’t surprise her. However, one of them stopped her in her tracks.

The caller, she said, alluded to the fact that they were with the very business she owns.

“I kind of paused for a minute. And I said, ‘Do you know who you’re talking to?’ And they said, ‘Yes, Linda McCoy.’ And I said, ‘Yes, the owner of mortgage team one.’ And silence. Click. They hung up,” she said.

Spectrum News NY1 contacted major credit bureaus like Equifax and Experian for comment.

In a statement, a spokesperson for their industry trade group suggested that trigger tracks are beneficial to consumers.

“Lenders who make timely credit offers can maximize consumer choices when they need it most. When shopping for a mortgage, it can mean saving thousands of dollars,” said Justin Hakes of the Consumer Data Industry Association.

“At a time when interest rates and house prices are rising, this can help people afford the right home for them,” he continued.

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