Committee advances bill requiring disclosure by callers using mortgage "trigger leads"

The House Business Committee on Feb. 17 voted to advance House Bill 149 to the House floor with a do-pass recommendation. The bill seeks to regulate solicitations based on so-called mortgage "trigger leads" and to require disclosure to consumers when callers purchase and use such leads.

Sponsor Representative Bruce told the committee that mortgage trigger leads are generated and sold by credit companies after consumers apply for or obtain mortgages; callers who buy those leads often have personal identifying information and can appear to be the consumer’s lender. "Currently such leads result in consumers being contacted by mortgage creditors often causing confusion as they are unable to distinguish whether the call is from their actual mortgage lender or another company," Bruce said.

Under the bill, callers using mortgage trigger leads would be required to identify at the start of the call that they are not the consumer’s current lender and to disclose that they purchased the consumer’s information as a mortgage lead. Bruce said enforcement would fall under the state Consumer Protection Act; a consumer who believes a caller violated the requirement could file a complaint with the state.

Members asked whether the bill affected information that is otherwise public; Bruce said the bill does not prevent companies from purchasing leads but instead requires disclosure when they call. Representatives also asked about recording of calls; Bruce said some companies likely record conversations but the bill focuses on disclosure, not recordkeeping.

Representative Cannon moved to send House Bill 149 to the floor with a do-pass recommendation; the committee approved the motion by voice vote.

Sponsors framed the bill as providing consumer clarity rather than prohibiting lead purchases; the committee voted to advance the measure.