Idaho passes new law to curb use of trigger leads
The new provisions, which take effect July 1, regulate the use of consumer information linked to mortgage credit inquiries and define who has access to it.
The bill defines a “mortgage trigger lead” as “a consumer report obtained pursuant to section 604(c)(1)(B) of the fair credit reporting act, U.S.C. 1681b, where the issuance of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit.”
The new rules require companies that use trigger leads to disclose their lack of affiliation with the original lender or broker. They also must inform consumers that their data was purchased without the lender’s knowledge or consent.
The law also mandates compliance with the Fair Credit Reporting Act (FCRA) prescreening rules, including firm credit offers, and it prohibits soliciting those who have opted out or are on do-not-call lists.
Idaho joins several other states in governing the use of residential mortgage trigger leads over the years. Texas was the most recent to address the issue.
The announcement comes as mortgage trade groups — including the Mortgage Bankers Association (MBA), the National Association of Mortgage Brokers (NAMB) and the Community Home Lenders of America (CHLA) — have openly advocated for legislation to restrict credit reporting agencies from sharing borrower information without consent. Exemptions would be given to companies that originate or service the subject mortgage, or those that have an establishing banking relationship with the consumer.
After failing to pass the House of Representatives in December 2024 — despite garnering the Senate‘s approval — a national trigger leads bill has been labeled as a key issue that trade groups are pushing for in 2025.
An MBA spokesperson said that “MBA’s advocacy continues to stop the abusive use of mortgage trigger leads while preserving their use in appropriately limited circumstances during a real estate transaction. We have been working in the early months of the 119th Congress with a bipartisan set of House and Senate lawmakers to get companion bills re-introduced as soon as possible.”
NAMB did not immediately respond to HousingWire’s request for an update.
