Rep. Torres seeks to ban mortgage ‘trigger leads”

A New York congressman is seeking to ban a practice that he worries puts people looking to buy a home at risk.

Bronx Democrat Ritchie Torres has introduced legislation prohibiting so-called “trigger leads” for residential mortgages.

Trigger leads work like this: After applying for a mortgage, an applicant’s information can be sold by credit bureaus to other lenders. Those lenders can then reach out with other offers. The leads can prompt unsolicited calls, texts, and mail.

Some argue these are helpful for consumers, providing them with a better sense of their options, including possibly better rates. But others worry they can lead to consumers being manipulated.