Senate Passes Trigger Leads Bill, Next Stop: The House

What’s new? On December 18, 2024, the Senate passed the Homebuyers Privacy Protection Act (S. 3502), a bipartisan bill aimed at limiting “abusive” digital marketing practices tied to trigger leads. After some initial setbacks—like being removed from a military spending bill—the measure made it through the Senate and now awaits action in the House of Representatives, which has just two days left before its winter recess to approve it.

This development has sparked praise from major mortgage trade groups, including the Mortgage Bankers Association (MBA), the National Association of Mortgage Brokers (NAMB), and the Community Home Lenders of America (CHLA). They argue that passing this legislation will help protect consumers—like you—from the onslaught of unsolicited calls, texts, and emails that often flood in after you apply for a mortgage.

Why is this important for Colorado Springs homebuyers? If the House follows the Senate’s lead, borrowers in Colorado Springs and across Colorado could soon see fewer unwanted communications, allowing you to focus on finding the right mortgage without constant interruptions.

Understanding Trigger Leads (and Why They’re So Annoying)

When you apply for a mortgage, your credit inquiry can be sold by credit bureaus to other lenders. This practice generates “trigger leads.” Suddenly, you’re fielding calls, texts, and emails from companies you never reached out to. While the original idea was to encourage competition and potentially get you better deals, the reality often feels overwhelming and invasive.

Though trigger leads are currently legal, the newly passed Senate bill aims to give consumers more control. If the House approves it, credit reporting agencies would be required to get your consent before sharing your information—unless the third party is your loan originator, current servicer, or has a defined banking relationship with you.

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Are Trigger Leads Legal?

Yes, they are. Under the Fair Credit Reporting Act, as long as certain requirements are met, trigger leads can be purchased in all 50 states. Federal agencies like the FTC and CFPB support this competitive environment, believing it helps consumers find better mortgage deals.

But with the new legislation poised to move forward, the landscape could shift. Industry leaders, including the MBA and NAMB, say this bill can restore some much-needed balance. If passed, it may transform the process from chaotic to more consumer-friendly—great news if you’re feeling swamped by unwanted offers.

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Can You Opt Out of Trigger Leads?

If the House doesn’t pass the bill right away, or if you want immediate relief, you still have options:

1. Join the Do Not Call Registry:

• Visit donotcall.gov or call 1-888-382-1222.
• Within 31 days, sales calls should diminish.
• Still getting calls after 31 days? Report them to the FTC.

2. Opt Out of Prescreened Offers:

• For a five-year opt-out or a permanent one, visit optoutprescreen.com or call 1-888-5-OPT-OUT (1-888-567-8688).
• Provide the requested personal details to process your request.
• It may take several weeks for mail offers to stop entirely.

These steps won’t end all marketing efforts—some companies don’t rely on trigger leads—but they can significantly cut down the barrage.

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Should You Opt Out of Trigger Leads?

If you’re actively shopping for a loan, credit card, or insurance, these unsolicited offers might highlight deals you didn’t know existed. Sometimes prescreened offers come with perks, like more favorable terms.

But if you’re not in the market or simply value peace and quiet, opting out may be a good move. Just remember: opting out stops prescreened offers based on trigger leads, not all marketing. Companies can still send general ads—they just won’t come from that sudden “trigger” event.

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Steps to Prepare for a Better Mortgage Journey

1. Know Your Options: Before jumping into a mortgage, understand the available loan types—fixed-rate, FHA, VA, conventional. Check out reliable sources like the CFPB or HUD to clarify each option’s pros and cons. Having this info upfront helps you spot a good deal without wading through noise.

2. Get Pre-Approved Early: Working with a reputable local lender—like 719 Lending in Colorado Springs—lets you get pre-approved and understand your budget from the start. Pre-approval shows sellers you’re serious and ensures you’re ready when you find your dream home.

3. Compare Mortgage Rates & Terms: Don’t focus solely on interest rates. Consider fees, closing costs, and other terms. With fewer unsolicited calls (especially if the new bill passes or you opt out), you can compare offers calmly and thoroughly, without feeling pressured.

4. Work With a Reputable Lender Like 719 Lending: A trustworthy lender who stays current with Colorado Springs real estate trends and evolving regulations is invaluable. With 719 Lending, you’ll get personalized advice and a clear path through the loan process—no pushy tactics, just expert guidance.

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Why 719 Lending Is Your Go-To Mortgage Partner

• Local Expertise: They know the Colorado Springs market inside and out.
• Personalized Service: Instead of battling random callers, you’ll partner with a dedicated loan officer who listens to your goals.
• Honest Guidance: With trigger leads curbed—or if you opt out—you won’t be swarmed with unwanted pitches. Instead, count on transparent communication and tailored solutions.

Ready to explore your loan options? Check out our Home Loan Options or contact 719 Lending for a one-on-one consultation.

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Frequently Asked Questions (FAQ)

1. Does opting out of trigger leads affect my credit score? No. Removing yourself from prescreened lists doesn’t hurt your credit score or your ability to apply for credit.

2. If the bill passes, will all unsolicited offers stop? Not all of them, but the most intrusive ones tied directly to trigger leads would be dramatically reduced. Some general marketing might still trickle in.

3. What if I opt out and then change my mind? Just visit optoutprescreen.com or call the toll-free number again to opt back in.

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The Takeaway

Trigger leads began as a way to increase options for consumers, but they’ve often led to a frustrating barrage of offers. Now, with the Senate’s passage of the Homebuyers Privacy Protection Act and pending House approval, you may soon have more control over who contacts you when you apply for a mortgage.

In the meantime, tools like the Do Not Call Registry and opt-out options give you immediate ways to regain your peace. And if you’re ready to navigate the Colorado Springs market with clarity, consider partnering with 719 Lending. With their local insights and commitment to helping you find the best loan—minus the overwhelm—you’ll move forward feeling empowered and confident about your homeownership journey.