Committee advances 'mortgage trigger' bill aimed at curbing post-application solicitations

An introducer (unnamed in the transcript) presented a mortgage "trigger" bill to the Banks and Financial Institutions committee intended to limit unsolicited third-party solicitations after a consumer applies for a mortgage. The sponsor said the measure targets marketing practices that inundate consumers with calls and requires that, in early solicitations, vendors must state they are not affiliated with the consumer's original lender.

The bill's draft (as discussed on the record) includes opt-out language so consumers who have chosen to be contacted remain reachable but consumers who opt out are protected from follow-up solicitations. The introducer said lines 36–38 would bar bait-and-switch tactics where initial offers are presented and then materially altered at a later stage.

Committee members asked about the interplay with federal law and industry standards; the introducer said the Fair Credit Reporting Act and federal regulators (CFPB, OCC) were relevant and that community bankers helped draft the language. Senator Hodges moved to pass the bill; the motion received a second and the chair announced the committee carried the motion unanimously by voice to favorably report the mortgage trigger bill out of committee.