Understanding Trigger Leads: Why the CFPB Should Act

September 3, 2024

In the ever-evolving landscape of mortgage lending, "trigger leads" have become a contentious issue.

These unsolicited marketing calls, often referred to as “junk calls” by the Community Home Lenders of America (CHLA), are drawing increasing scrutiny. Recently, CHLA urged the Consumer Financial Protection Bureau (CFPB) to address these practices, citing concerns about their impact on consumers. Here’s a closer look at what trigger leads are and why CHLA is calling for regulatory action.

What Are Trigger Leads?

Trigger leads are solicitations made by lenders or brokers when they receive information about a consumer’s mortgage application from credit bureaus. Essentially, when a borrower’s credit report is pulled for a mortgage application, it can trigger a flood of calls from other lenders who see this as an opportunity to pitch their services. While this practice is legal, it has raised several ethical and practical concerns.

Why Is CHLA Concerned?

CHLA’s recent letter to CFPB Director Rohit Chopra outlines three main concerns regarding trigger leads:

1. Lack of “Firm Offer of Credit”: CHLA argues that many mortgage brokers engaging in trigger lead solicitations do not have the capability to close loans, thus failing to meet the legal requirement of a “firm offer of credit.” This discrepancy raises questions about the legitimacy of such offers.
2. Misleading Representations: There are reports that some trigger lead calls misrepresent themselves as coming from the consumer’s current mortgage lender, even when they are not. This deceptive practice not only misleads consumers but also undermines trust in the lending process.
3. Unsupervised Loan Officers: CHLA points out that some loan officers make trigger lead calls without their employer’s consent. This lack of oversight can result in inconsistent and potentially harmful practices that reflect poorly on the entire industry.

What Action Does CHLA Want?

CHLA is calling for the CFPB to take several steps to address these issues:

  •  Encourage Consumer Complaints: The CFPB should promote the reporting of abusive trigger lead practices by consumers. Clear guidance on what constitutes permissible and impermissible practices is essential.
  • Identify and Act Against Violators: The CFPB should work to identify mortgage brokers or lenders frequently engaging in unethical practices and take appropriate action to stop these behaviors.
  • Support Legislative Efforts: CHLA supports a bipartisan bill introduced in the U.S. House of Representatives earlier this year, which targets the abusive use of mortgage trigger leads. The bill aims to curb these practices and provide more protection to consumers.
The Path Forward

The CFPB’s proactive stance on issues like “junk fees” has set a precedent for addressing other consumer protection challenges. By applying similar scrutiny to trigger leads, the CFPB can help ensure a fairer, more transparent mortgage lending environment.

As the debate continues, it’s crucial for both consumers and industry professionals to stay informed about these developments. Regulatory action could reshape how mortgage leads are handled, ultimately benefiting borrowers and fostering a more ethical lending market.
For more updates on this issue and how it might impact you, stay tuned to DNVR Lending.


DNVR Lending Blog

June 1, 2025
From the towering peaks of the Rockies to the vibrant cities along the Front Range, Colorado offers dream-worthy destinations for every kind of homeowner. But when it comes to buying a home, mountain and metro properties come with very different considerations.
May 1, 2025
When buying a home, many people assume they need to save up a 20% down payment. While that amount may have been the standard in the past, today’s homebuyers have a variety of options that can make purchasing a home more accessible, especially for first-time buyers. Let’s break down the facts about down payments, including low-down-payment loans and programs that require no down payment at all.
April 1, 2025
Buying a home is an exciting journey, but before you start touring properties, there's an essential first step: getting pre-approved for a mortgage. Pre-approval is more than just a financial formality—it can significantly strengthen your buying position and make the process smoother from start to finish. Here’s what you need to know.
March 1, 2025
When you're preparing to buy a home, your credit score plays a crucial role in determining your mortgage terms. A strong credit score can help you secure a lower interest rate, saving you thousands over the life of your loan. If your score needs improvement, don’t worry—there are practical steps you can take to give it a boost.
February 1, 2025
In the world of lending, ethical practices aren’t just a standard—they’re a necessity. At DNVR Lending, we understand that buying a home or refinancing is one of the most significant financial decisions you’ll ever make. That’s why we’re committed to upholding transparency, fairness, and trust in everything we do. Here’s why ethical lending practices matter and how we ensure they remain at the core of our work.
January 3, 2025
As we head into 2025, many homeowners are wondering if this is the year to refinance their mortgage. Refinancing can be a powerful tool to save money, reduce debt, or reach financial goals—but it’s not a one-size-fits-all solution. Here’s what you need to consider before making the move.
December 1, 2024
Whether you're a homeowner or planning to become one, these five smart financial moves can help you make the most of your year-end review.
November 3, 2024
Elections can stir up conversations about policies, leadership, and national direction, but they also have a direct impact on industries—including mortgages and real estate. As we approach another election season, it’s important to understand how this can affect the housing market, mortgage rates, and homebuying trends. Here’s a breakdown of what’s typically affected, how it plays out, and the usual timeline of these changes.
September 26, 2024
With the Federal Reserve's recent announcement of a 0.5% cut to the Federal Funds Rate, many people are hopeful that mortgage rates might also drop significantly. But before you start planning your next refinance, let's dive into what these changes actually mean for you as a homeowner.
August 5, 2024
As your children prepare to head off to college, the cost of higher education can be a significant financial burden. Tuition, books, and living expenses add up quickly. However, there is a smart financial strategy that can help you mitigate some of these costs: investing in real estate. By purchasing a property for your college-bound child, you can reduce their housing expenses and potentially create a source of income by renting out extra rooms. Here’s how you can make this strategy work for you.
More Posts