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Committee approves mortgage-trigger bill to curb post-application solicitations
Summary
A committee unanimously passed a "mortgage trigger" bill that would require lenders and solicitors to disclose affiliation in early solicitations and allow consumers to opt out of follow-up solicitations; the measure aims to reduce bait-and-switch and excessive post-application sales calls.
An unidentified presenter introduced a mortgage-trigger bill to the Banking and Financial Institutions Committee that would limit certain loan-solicitation practices after a borrower applies for a mortgage. The presenter said the bill requires early solicitation language (lines 28–32) telling consumers the caller is not affiliated with the original lender, describes an opt-out mechanism for consumers who do not want solicitations, and prohibits bait-and-switch offers that materially change rates or terms.
Committee members asked about federal overlap; the presenter and committee referenced the Fair Credit Reporting Act in discussion about which federal authorities govern credit reporting and solicitation. Senator Hodges moved to pass the bill; a second was recorded and the committee approved the motion unanimously.
Testimony and sponsors cited support from community bankers and real-estate stakeholders who said the bill protects consumers and addresses nuisance and misleading solicitations after a mortgage application. The committee voted to report the bill favorably to the next stage.
