The National Associaiton of Mortgage Brokers (NAMB) is calling on its membership and consumer to seek a change in federal law related to practice of trigger list sales by credit bureaus.
Trigger lists are traditionally used by creditors to monitor existing customers for signs of financial distress or to protect their interest in a pool of mortgages. According to the trade group, mortgage originators are unable to prevent the inclusion of their borrowers' personal information on trigger lists that are sold by credit bureaus. NAMB argued that a trigger list subscriber who acquires a name, address and FICO score range from a credit bureau are either not prepared to offer the consumer a mortgage or attempt to resell the information to lenders and insurance companies.
NAMB is advocating for its members and consumers to contact the Federal Trade Commission, which manages the Fair Credit Reporting Act, in regard to this issue.
“For many years, NAMB has been working diligently against this often-harmful practice of handling consumer’s private information through trigger leads,” said Rick Bettencourt, President of NAMB. “We believe this is a negligent practice for our industry and consumers therefore we are calling on our members, the public and furthermore congress to align themselves this initiative which protects people as they look to acquire property. We promise to work tirelessly with lawmakers, our members, state associations and communities across the nation until this language is updated and consumers’ rights are further protected against this unethical practice.”