Nabors said he was disappointed with “anybody that didn’t support the bill,” whether credit bureaus or loan originators that purchase trigger leads, although he noted the breadth of support for the bill as a positive sign for hopes of its revival in 2025.
“We had 43 senators on this. We had 99 congressmen,” he said. “And I think the credit bureaus are going to have to take that into account when they’re putting their plans together [for next year] because this is not just one association that is unhappy. This is the entire mortgage industry,” he said. “That includes banks themselves – they aren’t happy, because they’re being affected too.”
‘The entire industry thinks that practice needs to end’
Top of mind for NAMB in its efforts to push the legislation through next year, according to Nabors, will be reiterating to members of Congress how much the practice harms the consumer.
Credit bureau charges are the only fees originators can collect up front – “and that’s non-refundable if you cancel it,” he said. “So you pay that fee and then you have complete strangers calling you, who you don’t know. They don’t know what your credit looks like and they don’t know what your income or debt ratio is. All they know is that you applied with another company, and they’re going to offer you a deal that they don’t know if they can keep.
“So the consumer then has to pay for two credit bureaus, and they might find out later that the second company isn’t offering as good a deal as the first people did, who had all your information and gave you an interest rate quote based on actual known facts and not just pie-in-the-sky promises. I don’t see how you can be any more anti-consumer than to be able to do that. And NAMB, along with the entire industry, thinks that practice needs to end.”
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