The real estate industry is constantly evolving, but one problem that has plagued both agents and loan originators for years is the aggressive use of trigger leads. If you’ve ever had a buyer complain about getting bombarded with unsolicited calls or texts from random mortgage companies, you’ve likely encountered the consequences of this practice. Trigger leads occur when a consumer’s credit is pulled during the mortgage process, and their information is sold to other lenders, who then flood the buyer with calls promising better rates or terms.
As a 37-year mortgage veteran, I’ve seen the chaos this causes firsthand. I’ve had clients tell me they received over 25 calls in a single day from mortgage call spammers, each claiming they could offer a better deal without knowing a thing about the buyer's credit profile, needs, or goals. It’s frustrating, and frankly, it’s a poor reflection on the entire lending industry. It’s confusing for buyers, it disrupts the flow of a real estate contract, and it creates unnecessary stress for everyone involved. Simply put, it should be illegal to sell the buyers information without their consent.
Fortunately, there’s some good news on the horizon. The Curb Abusive Trigger Leads Act, a bill the mortgage industry has been working on for over two years, has made significant progress. As of now, the bill has been included in the Defense Authorization Act, which is set to be voted on after the upcoming elections. This is a huge step forward, and with 150 sponsors supporting the bill, we’re optimistic it will pass.
So, what does this mean for real estate agents and your clients? First, it’s important to understand that if passed, the bill will not completely eliminate trigger leads. However, it will dramatically reduce the scope of who can legally purchase and use these leads. Here are the key changes that will benefit your clients and, ultimately, the transaction process:
Past Clients: Loan originators will be able to get notified when their past clients are seeking new mortgage opportunities. This allows the loan officer to reconnect with both the client and the real estate agent who was involved in their previous transaction, potentially bringing a new listing or purchase opportunity back to the agent.
Loan Servicers: Mortgage servicers, who currently manage a buyer’s existing loan, will still be allowed to purchase trigger leads. This makes sense because they already have a relationship with the borrower. This will be a common call to the borrower as most servicers already participate in buying trigger leads.
Existing Bank Relationships: If a consumer has a relationship with an FDIC-insured bank, that bank will be allowed to purchase the trigger lead. This, too, is limited to institutions that already have some connection with the borrower. This activity will be minimal as it's not common for banks to purchase trigger leads.
By limiting trigger lead sales to these specific scenarios, we’re cutting down on the barrage of unsolicited calls that confuse buyers and complicate transactions.
As real estate professionals, you know how vital it is to keep the deal moving smoothly from start to finish. A confused buyer is rarely a happy buyer, and that’s where trigger lead spam causes real harm. Buyers are often led to believe they’re missing out on a better deal, but in reality, the companies calling them don’t have enough information to make those promises. They’re just fishing for business, and it disrupts the trust and focus we work so hard to build with our clients.
From my experience, when buyers get overwhelmed with these calls, it creates doubt. They start second-guessing the lender they’re already working with, and that doubt can lead to delays, unnecessary stress, and even lost deals. For real estate agents, this means more time spent reassuring your clients and more risk of complications that could derail the transaction.
The Curb Abusive Trigger Leads Act aims to restore some sanity to the process. By narrowing down who can purchase these leads, it protects your buyers from being bombarded by aggressive spammers and helps keep the transaction moving smoothly. Fewer distractions, less confusion, and more focus on closing the deal.
This is great news not just for consumers but also for real estate agents and loan originators. When buyers feel confident and secure in the mortgage process, they’re more likely to have a positive experience. And positive experiences lead to smoother transactions, stronger referrals, and better long-term relationships for all of us.
If you want to chat more about how this bill could impact you and your clients, feel free to call or text me directly at 707-695-6313. You can also schedule a quick 15-minute call with me by clicking on my calendar image below.
Let’s continue working together to give our clients the best experience possible—because a confused buyer doesn’t lead to a happy closing, but an informed one does.
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