Committee approves mortgage-trigger bill to curb post-application solicitations

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.