Debunking the Trigger Lead Myths: Why the Critics Got It Wrong

As President Trump signed the Homebuyers Privacy Protection Act into law recently, it's worth addressing the misconceptions that persisted throughout this three-year advocacy campaign. The critics weren't just wrong - they fundamentally misunderstood both the legislation and the market dynamics at play.

Myth 1: "Credit Report Costs Will Skyrocket"

The assumption that credit bureaus will raise prices to offset lost trigger lead revenue ignores basic market realities. Only Experian was selling trigger leads at scale—not all three bureaus. In an oligopoly with three players, one bureau dramatically raising prices while the others maintain current rates isn't sustainable.

More importantly, credit bureaus can raise prices anytime they want, for any reason. They don't need this legislation as justification. The lack of true market competition in credit reporting means pricing decisions are already disconnected from typical supply-demand dynamics.

Myth 2: "The Servicer Exception Makes This Bad for Brokers"

This criticism misses how the market actually works. Servicers can already contact borrowers when credit is pulled—nothing changes there. The difference is what else happens.

Today: Broker pulls credit → borrower gets hundreds of calls from trigger lead solicitors + servicer calls.

Tomorrow: Broker pulls credit → borrower gets calls only from servicer.

Yes, servicers benefit from reduced noise in refinance retention. But that same reduced noise benefits brokers too. We're not losing market share to servicers—we're both winning at the expense of trigger lead solicitors who add no value to anyone except themselves.

Myth 3: "It Doesn't Go Far Enough, So It's Not Worth It"

This all-or-nothing thinking has kept meaningful reform off the table for years. Perfect legislation written by brokers for brokers existed for multiple congressional sessions. It went nowhere.

Compromise legislation that works for the entire industry, while still delivering massive improvements for brokers and consumers, became law. That's not a failure of vision; it's the difference between idealism and results.

The Real Lesson: Strategic Advocacy Works

The credit bureaus deployed significant lobbying resources against this legislation. They had money, established relationships, and regulatory capture advantages. They still lost because being on the right side of the argument - combined with strategic coalition building - still matters in Washington.

This wasn't David versus Goliath. It was a well-resourced industry coalition against credit bureau lobbying. The BAC contributed our grassroots network, direct advocacy, and unwavering focus. The MBA contributed institutional credibility and lobbying infrastructure. Together, we had the tools to win.

The lesson for future advocacy: don't go it alone, don't let perfect be the enemy of good, and always remember that sustainable change requires sustained commitment.

Implementation begins in March. The fight continues with LO Comp reform, credit report cost reduction, and GSE reform conversations.