Committee backs HB 99 to curb mortgage 'trigger lead' solicitations after credit checks

Representative Bennion presented HB 99, Residential Mortgage Loan Amendments, which would restrict the use of so-called “trigger leads” — data sold after a lender runs a mortgage applicant’s credit pull that third parties then use to solicit the applicant. The committee gave the bill a unanimous favorable recommendation.

The sponsor said the bill would keep mortgage-applicant information from being sold for unsolicited solicitations and modeled the measure on a Kentucky law. Loan officers and industry witnesses described common customer experiences: a soft pull at the start of the application process is nonpublic, but a subsequent hard credit pull can trigger multiple calls, texts and emails from other companies. Jason Gautreaux, a mortgage banker, said a soft pull is not inundating but a hard pull can be, noting also a consumer cost: “to pull a soft pull is $40 per person” (industry speaker's estimate) and hard pulls are part of underwriting.

Witnesses and lenders told the committee the bill does not attempt to ban credit bureaus from selling trigger leads (a federal authority), but aims to limit deceptive or abusive uses by companies that buy those leads. Gina Johnson, a loan officer from the public, described customers who “thought they were being contacted by my office” after receiving misleading calls. Sponsor Bennion and Representative Thurston said the bill was a consumer-protection step; Thurston called it “a huge step in the right direction” and said he hopes for future federal action to address bureaus directly.

Representative Thurston moved the favorable recommendation; the motion passed unanimously. Committee members and industry representatives said they hope the state action will reduce nuisance contacts and misleading solicitations while acknowledging some federal limits on preventing bureaus from selling lead lists.