Consumers are overwhelmed by fine print and disclosures they do not read or understand, and an opt-in requirement for trigger leads will allow retail lenders to hide opt-ins within applications and sales processes, locking borrowers into their ecosystems. Consumers’ habit of accepting internet pop-ups increases potential abuse of opt-in buttons. The opt-in provision disproportionately benefits retail lenders with large marketing budgets, funneling consumers back to retail where they pay more and face fewer options, thereby consolidating market power. Uncertainty about regulation and enforcement raises prospects for litigation and the need for future legislative fixes.
The CEO source described the opt-in provision as a gift to retail lenders. Independent brokers do not have a billion-dollar marketing machine to trick people into opting in. Consumers will end up funneled right back to retail, where they pay more and have fewer options. As a result, the source said that the trigger leads bill locks in control for retail mortgage lenders. They already keep 70% to 80% of their past clients. Take away trigger leads, and you hand them even more market power.
This is not about protecting consumers. It is about protecting the retail giants from competition. Brendan McKay, owner of McKay Mortgage and chief advocacy officer for the Broker Action Coalition (BAC), admits that not enough is known about the opt-in provision or how it will be regulated. The social media buzz of the trigger leads argument is contributing to the concerns among lenders and loan officers. McKay finds that it's common for industry talking heads to post hot takes about trigger leads to get noticed.
Collection
[
|
...
]