Game-Changer: Trigger Leads Bill Axed! BAC Urges CFPB to Investigate Mega-Brokers

Welcome to The Mortgage Mix, your go-to source for everything you need to know about the mortgage industry! Catch our updates every other Friday afternoon and stay ahead of the game.

– Big news on Capitol Hill: Senate Amendment 2358, a bold bill designed to rein in the use of mortgage trigger leads, has been removed from the Fiscal Year 2025 National Defense Authorization Act (NDAA). This amendment, rooted in the “Homebuyers Privacy Protection Act of 2024” and backed by the Mortgage Bankers Association, sought to curb the practice of selling trigger leads by national credit reporting agencies to various mortgage firms.

So, what are trigger leads? They’re those pesky calls, texts, and emails you get after your credit report is pulled for a mortgage application. Senate Amendment 2358 aimed to shift from an “opt-out” to an “opt-in” model, giving you more control over who can contact you.

The Broker Action Coalition (BAC), a key supporter of this bill, highlighted their vigorous efforts with lawmakers: “We held over 250 meetings on Capitol Hill! While this bill isn’t completely off the table, we know it faces a tough uphill battle before year’s end. We’re committed to pushing it forward, but we also recognize the challenges ahead.”

– In other industry news, BAC’s Chief Advocacy Officer, Brendan McKay, recently raised alarms about the Consumer Financial Protection Bureau (CFPB) intensifying its scrutiny of “mega-brokers”—those firms with over 1,000 loan officers. McKay emphasizes the need for the industry to brace for regular regional audits focusing on steering practices, borrower compensation, and undue reliance on single lenders.

“As mortgage brokers grow in market share, there’s no doubt that large brokerages must be held to the same auditing standards as comparable-sized lenders,” he stated on LinkedIn.

– And in case you missed it: National mortgage heavyweight Rocket Mortgage has launched a legal battle against the U.S. Department of Housing and Urban Development (HUD). The company claims the lawsuit is aimed at resolving conflicts between government regulations concerning independent appraisers and lender liability. Rocket Mortgage is also seeking to dismiss a related claim from the Department of Justice (DOJ) stemming from these regulatory discrepancies.

The DOJ had previously filed a lawsuit against Rocket Mortgage and two appraisal firms, alleging discriminatory practices violating the Fair Housing Act. Bill Emerson, president of Rocket Companies, called the DOJ’s actions a “massive overreach,” asserting, “We will not stand idly by while the courts are used as platforms for publicity instead of genuine justice.”

– Meanwhile, in a move that has garnered widespread approval from the mortgage sector, President-elect Donald Trump has nominated Scott Turner as the new HUD Secretary. Turner, who currently serves as the chief visionary officer at JPI and a former Texas state representative, has extensive experience from his time in the first Trump administration, where he played a pivotal role in the Opportunity Zones initiative.

“Addressing our nation’s housing affordability crisis must be a top priority for the Trump administration,” said MBA President and CEO Bob Broeksmit. “Turner’s leadership is key to collaborating on policies and programs that enhance housing supply and affordability.”

Community Home Lenders of America (CHLA) also expressed optimism, stating, “We look forward to partnering with HUD and the new administration to foster affordable homeownership, especially for first-time and underserved buyers. As we approach 2025, CHLA will continue to lead initiatives that protect borrowers and support community lenders.”